The total value of new orders in the Slovak industry fell by 4.2% y/y to EUR 3.38bn in June 2013, following a 0.7% decline in May, data from the statistics office showed. New orders in the vehicles manufacturing industry, which accounts for almost half of total orders, fell 2.4% y/y in June, after a 2.3% annual decline in May. Slovakia hosts three big auto making plants, run by Germany’s Volkswagen, France’s PSA Peugeot-Citroen and South Korea’s Kia Motors.
The manufacture of computers, electronics and optics, the second most important sector for Slovakia’s export-oriented economy, recorded a 29.5% annual drop in new orders in June, deepening from a 14.8% decline in the previous month.
On a monthly basis, seasonally-adjusted industrial orders fell 5.6% in June, following a 4.4% decline in May.
For the first six months of the year, new industrial orders increased by 1.2% y/y to EUR 21.32bn.
IntelliNews comment: The industrial orders data is another important economic indicator that worsened further in June after posting a surprising recovery in April. Exports and industrial sales also slowed down in June, while industrial output remained subdued. As the new orders data provides an insight into the future, we could expect a slowdown in the manufacturing industry in the near term. Slovakia’s export-fuelled economic growth is widely expected to decelerate to below 1% this year from 2% in 2012, reflecting waning foreign demand and subdued domestic consumption.
|June-13, EUR mn||June-13, y/y change||May-13, y/y change||June-13, m/m change||May-13, m/m change||2012, y/y change|
|Manufacture of textiles||21.7||6.8%||0.1%||2.1%||-4.5%||6.4%|
|Manufacture of wearing apparel||18.1||11.3%||7.4%||0.1%||-6.8%||-3.8%|
|Manufacture of paper and paper products||86.0||-0.8%||2.1%||-3.7%||1.9%||11.4%|
|Manufacture of chemicals and chemical products||141.2||-18.4%||-5.9%||-7.6%||8.1%||-5.4%|
|Manufacture of pharmaceutical products and preparations||16.1||-41.5%||-34.9%||-2.1%||12.4%||-3.7%|
|Manufacture of basic metals||262.5||-16.9%||0.8%||-13.8%||-14.0%||8.8%|
|Manufacture of fabricated metal products, except machinery and equipment||233.8||9.5%||9.3%||-4.6%||-5.9%||10.3%|
|Manufacture of computer, electronic and optical products||263.8||-29.5%||-14.5%||-10.1%||-7.7%||-0.8%|
|Manufacture of electrical equipment||221.6||16.9%||14.2%||-0.9%||1.1%||4.1%|
|Manufacture of machinery and equipment||288.9||22.4%||25.2%||-6.7%||-2.8%||-0.5%|
|Manufacture of motor vehicles, trailers and semi-trailers||1,803.4||-2.4%||-2.3%||-3.9%||-3.7%||26.5%|
|Manufacture of other transport equipment||25.0||10.7%||-28.0%||13.5%||-16.3%||0.0%|
|Source: Statistical Office of the Slovak Republic|
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