Annual fall in Slovak new industrial orders deepens to 4.2% in June 2013

By bne IntelliNews August 13, 2013

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
Industry, total 3,382.0 -4.2% -0.7% -5.6% -4.4% 13.1%
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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