Slovak annual industrial output growth edges up to 2.7% in June 2013

By bne IntelliNews August 9, 2013

Slovakia's industrial output growth accelerated marginally to 2.7% y/y in June 2013 from 2.6% in May, despite a slowdown in the industry’s main growth driver– the car manufacturing sector, data from the country's statistics office showed.

The output of the manufacturing sector grew 3.3% y/y in June, speeding from a 2.8% y/y rise in the previous month, as a slowdown in car production growth to 1.3% from 3% was offset mainly by an 11.8% rise in the manufacture of metal products, except machinery, following a 1.8% contraction in the previous month.

Auto manufacturing is the major driving force of the Slovak economy, with the country being home to three big car assembling plants run by Germany's Volkswagen, South Korea's Kia Motors and France's PSA Peugeot Citroen.

Another engine of Slovakia's economy, electronics production at plants run by South Korea's Samsung and Taiwan's Foxconn, shrank 1% y/y in June, softening from a 9.4% y/y drop in May.

On a seasonally adjusted monthly basis, Slovakia's industrial output grew 0.3% in June, following a 0.2% growth in the previous month.

For the first half of the year, the industrial production increased by 2.6% y/y.

IntelliNews comment: Slovakia’s industrial output growth has remained subdued and significantly below its last year levels. We anticipate industrial production to remain subdued in the near term in line with muted demand from the eurozone, which is Slovakia’s main trading partner. Moreover, car production, which jumped by 26% last year, is expected to be mostly flat this year, as no new capacities are planned to be launched and demand is subdued. Slovakia’s export-driven economy is expected to expand by less than 1% this year, slowing from a 2% growth in 2012.

y/y change June 2013 May 2013 June 2012 H1 2013 2012
INDUSTRIAL OUTPUT 2.7% 2.6% 9.1% 2.6% 8.1%
Mining -5.0% 7.5% -13.6% -1.6% -3.1%
Manufacturing 3.3% 2.8% 11.9% 2.9% 11.6%
--food, beverages and tobacco -2.1% 2.8% -1.0% 0.6% -1.1%
--textiles, apparel, leather and related products 23.3% 27.9% 14.5% 23.0% 18.0%
--wood and paper products, printing -4.0% 6.1% 5.9% -0.2% 0.2%
--coke and refined petroleum products -2.5% 53.3% -6.2% 3.8% -10.6%
--chemicals and chemical products 0.0% 27.6% -20.4% 0.7% -4.6%
--pharmaceuticals, medicinal chemical and botanical products -49.0% -52.5% -18.9% -44.1% -10.9%
--rubber, plastics and other non-metallic mineral products 4.6% 6.4% 0.2% 1.0% 1.8%
--basic and fabricated metal products, except machinery and equipment 11.8% -1.8% 6.5% 2.9% 6.2%
--computers, electronics and optics -1.0% -9.4% 27.6% -5.5% 17.3%
--electrical equipment 14.6% 22.4% -8.4% 27.8% 10.4%
--machinery and equipment -0.3% 2.7% 14.0% 1.2% 12.9%
--transport equipment 1.3% 3.0% 30.5% 5.3% 26.0%
--other manufacturing, repair and installation of machinery and equipment 9.7% -17.3% -3.5% -12.2% 9.8%
Electricity, gas, steam and air conditioning supply -0.8% -0.1% -5.8% 1.6% -9.4%
Source: Statistical Office of the Slovak Republic          

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