Slovak industrial output growth accelerates to 6.1% y/y in May 2014

By bne IntelliNews July 10, 2014

Slovakia's industrial output growth accelerated to 6.1% y/y in May 2014 from 5% a month earlier supported by rising mining production, data from the country's statistics office showed on July 10.

Manufacturing production also increased by 6.1% y/y in May, cooling from a 6.8% y/y expansion the month before. Production increased the most in electrical equipment (+28.7%), basic and fabricated metal products, except machinery and equipment (+15.2%) and repair and installation of machinery and equipment (+14.4%).

The output in the car manufacturing sector, the industry’s main growth driver, rose by 6.7% y/y in May, accelerating from a revised 5.9% annual growth in April. Slovakia is home to three big car assembling plants run by Germany's Volkswagen, South Korea's Kia Motors and France's PSA Peugeot Citroen.

The second most important driving force of the Slovak industry, the electronics production, posted a 4% y/y rise in May, improving from a 0.8% annual drop in April. Slovakia is home to plants run by South Korea's Samsung and Taiwan's Foxconn

The utilities sector increased by 6.8% y/y in May after decreasing by a revised 6.5% y/y in the previous month. The mining industry’s output grew by 1.9% y/y in May after posting an annual 7% decrease in the previous month.

On a seasonally adjusted monthly basis, Slovakia's industrial output grew by 0.7% in May after edging up 0.6% in April.

In the first five months of the year, the country's industrial production increased by 6.8% y/y.

IntelliNews comment: We expect Slovakia’s industrial output to continue its upward trend in the months to come supported by plans of the country's car makers to expand their production capacities. In particular, Germany’s Volkswagen may start producing its Lamborghini Urus SUV model in Slovakia and its Bratislava plant will produce completely the Porsche Cayenne model as of 2017. Improving prospects for the eurozone, the country's main trading partner, as well as stronger domestic consumption should also support the growth. 

y/y change May 2014 April  2014 May 2013 Jan-May 2014 2013
INDUSTRIAL OUTPUT 6.1% 5.0% 2.4% 6.8% 5.3%
Mining 1.9% -7.0% 7.3% -1.4% -1.1%
Manufacturing 6.1% 6.8% 2.6% 8.3% 6.6%
--food, beverages and tobacco -6.0% 4.7% 2.8% -1.5% 0.3%
--textiles, apparel, leather and related products -9.2% -10.8% 25.0% -11.3% 24.6%
--wood and paper products, printing -4.7% -1.9% 3.5% 0.9% 0.1%
--coke and refined petroleum products -30.0% -24.4% 56.9% -14.5% -4.6%
--chemicals and chemical products -9.5% 15.9% 22.2% -3.4% 3.7%
--pharmaceuticals, medicinal chemical and botanical products -7.9% -2.0% -52.7% -12.6% -43.9%
--rubber, plastics and other non-metallic mineral products 5.3% 11.6% 5.6% 10.0% 6.7%
--basic and fabricated metal products, except machinery and equipment 15.2% 12.4% -1.1% 11.5% 9.9%
--computers, electronics and optics 4.0% -0.8% -8.4% 5.1% -2.3%
--electrical equipment 28.7% 9.4% 22.1% 22.8% 43.5%
--machinery and equipment 5.1% 9.4% 2.8% 8.0% 3.5%
--transport equipment 6.7% 5.9% 2.4% 10.1% 6.5%
--other manufacturing, repair and installation of machinery and equipment 14.4% 24.5% -16.5% 17.5% 3.0%
Electricity, gas, steam and air conditioning supply 6.8% -6.5% 0.5% -2.1% -2.7%


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