Slovak industrial output growth speeds to 12.6% y/y in Nov 2013

By bne IntelliNews January 13, 2014

Slovakia's industrial output growth speeded to 12.6% y/y in November 2013 from a revised 7% y/y in October on the back of expanding manufacturing sector, data from the country's statistics office showed.

Manufacturing production grew by 14.6% y/y in November, accelerating down from a revised hike of 9.2% a month earlier. Production increased the most in electrical equipment (+84.1%), basic metals and fabricated metal products (+19.4%), rubber and plastic products and other non-metallic mineral products (+17.3%) and other manufacture, repair and installation of machinery and equipment (+10.6%).

The output of the industry’s main growth driver – the car manufacturing sector – increased by 15.4% y/y in November after rising by a revised 7.6% y/y 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.

The second most important engine of the Slovak industry, electronics production at plants run by South Korea's Samsung and Taiwan's Foxconn, posted a 5.3% y/y growth in November after falling by a revised 0.9% y/y in October.

The utilities sector remained unchanged in November after falling by a revised 7.2% y/y in the previous month. The mining industry’s output rose by 3.1% y/y in November following a 2.6% y/y drop in October.

On a seasonally adjusted monthly basis, Slovakia's industrial output 1.9% in November following a 0.4% growth in October.

For the first eleven months of the year, the industrial production increased by 4.6% y/y.

IntelliNews comment: Slovakia’s industrial output has been growing in each month of 2013 but the growth rates were significantly below the 2012 levels. In November the improvement was more significant thanks to improved prospects for the euro zone, which is the main trading partner of Slovakia. Car production also posted a strong growth in November but as the industry added no new capacities in 2013 and demand is soft, we do not expect full-year production to be significantly higher than in 2012.

y/y change Nov 2013 Oct 2013 Nov 2012 Jan-Nov 2013 2012
INDUSTRIAL OUTPUT 12.6% 7.0% 8.7% 4.6% 8.0%
Mining 3.1% -2.6% 3.0% -1.9% -3.2%
Manufacturing 14.6% 9.2% 9.4% 5.7% 11.5%
--food, beverages and tobacco -3.7% 1.5% -2.5% -0.4% -1.1%
--textiles, apparel, leather and related products 26.6% 21.7% 25.3% 25.7% 17.9%
--wood and paper products, printing 1.9% -1.6% 6.2% -0.1% -2.2%
--coke and refined petroleum products -6.9% -23.7% 0.2% -3.5% -10.1%
--chemicals and chemical products -1.8% -13.1% 7.3% 2.9% -4.3%
--pharmaceuticals, medicinal chemical and botanical products -44.7% -53.2% 13.3% -43.4% -11.0%
--rubber, plastics and other non-metallic mineral products 17.3% 11.8% 2.1% 5.6% 1.9%
--basic and fabricated metal products, except machinery and equipment 19.4% 18.4% -1.9% 8.4% 6.1%
--computers, electronics and optics 5.3% -0.9% 18.8% -1.7% 17.0%
--electrical equipment 84.1% 67.0% 9.3% 42.1% 10.7%
--machinery and equipment 6.3% 2.6% 10.9% 2.9% 12.9%
--transport equipment 15.4% 7.6% 20.7% 5.6% 26.1%
--other manufacturing, repair and installation of machinery and equipment 10.6% 16.7% -5.6% -0.7% 9.7%
Electricity, gas, steam and air conditioning supply 0.0% -7.2% 5.0% -2.0% -9.4%
Source: Statistical Office of the Slovak Republic          

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