Slovak annual industrial output growth slows to 2% in July 2013

By bne IntelliNews September 10, 2013

Slovakia's industrial output growth slowed to 2.0% y/y in July 2013 from a revised 2.8% y/y rise in June, as the industry’s main growth driver – the car manufacturing sector – recorded a decline for the first time since October 2009, data from the country's statistics office showed. The output of the auto manufacturing sector fell 5.1% y/y in July, following a 1.3% growth in June. 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, posted a 10.2% y/y growth in output in July, reversing a 1.2% drop in June.

The overall output of the manufacturing sector grew 3.8% y/y in July, speeding up from a 3.4% y/y increase in the previous month, backed mainly by a 51.6% jump in electrical equipment production and by a 43.8% growth in textile production. The manufacturing sector’s improved performance was offset by a 10.2% y/y drop in the utilities’ output.

On a seasonally adjusted monthly basis, Slovakia's industrial output rose 0.1% in July, following a 0.3% growth in the previous month.

For the first seven months 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 soft. Slovakia’s export-driven economy is expected to expand by less than 1% this year, easing from a 2% growth in 2012.

y/y change July 2013 June 2013 July 2012 Jan-July 2013 2012
INDUSTRIAL OUTPUT 2.0% 2.8% 12.0% 2.6% 8.0%
Mining 1.6% -5.0% -10.3% -1.2% -3.2%
Manufacturing 3.8% 3.4% 16.0% 3.1% 11.5%
--food, beverages and tobacco 0.6% -2.2% 1.3% 0.5% -1.1%
--textiles, apparel, leather and related products 43.8% 23.4% 12.9% 25.6% 17.9%
--wood and paper products, printing -1.5% -3.1% -3.3% 0.3% -2.2%
--coke and refined petroleum products -11.7% -2.8% -3.9% 0.7% -10.1%
--chemicals and chemical products 21.9% 0.6% -14.0% 3.1% -4.3%
--pharmaceuticals, medicinal chemical and botanical products -31.9% -50.0% -32.0% -42.9% -11.0%
--rubber, plastics and other non-metallic mineral products 5.0% 3.7% 1.9% 1.4% 1.9%
--basic and fabricated metal products, except machinery and equipment 4.0% 12.9% 9.1% 3.5% 6.2%
--computers, electronics and optics 10.0% -1.2% 40.8% -3.3% 17.3%
--electrical equipment 51.6% 19.3% 12.0% 31.4% 10.3%
--machinery and equipment 10.2% -3.5% 4.3% 2.0% 12.9%
--transport equipment -5.1% 1.3% 44.4% 3.8% 26.0%
--other manufacturing, repair and installation of machinery and equipment 6.0% 9.6% 6.8% -10.0% 9.9%
Electricity, gas, steam and air conditioning supply -10.2% -0.6% -6.4% 0.1% -9.4%
Source: Statistical Office of the Slovak Republic          

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