Industrial production increased by more than 5%, affected mainly by higher production related to energy and manufacture of motor vehicles

Industrial production recorded the highest growth this year in the first holiday month. A higher volume of production than a year ago was reported by two thirds of the monitored industrial sectors. July´s balance was not affected by factory holidays in large enterprises, they were almost similar to the last year's dates.

In July 2024, industrial production¹⁾ of the Slovak Republic increased by 5.4% year-on-year, which was the highest growth since the beginning of the year. The industry was able to deliver a higher performance than a year ago for the third time. In total, 11 of the 15 monitored sectors²⁾ recorded higher performance year-on-year, among them almost all the main sectors of Slovak industry. The balance of the first holiday month was not affected by factory holidays, as the dates especially in manufacture of motor vehicles, were almost identical as a year ago.

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The Statistical Office of the SR points out that it revised the data in the individual months of 2023 and 2024 due to the implementation of price deflators at the more detailed level of the SK NACE Rev. classification. 2. While in 2023 this revision adjusted the year-on-year development of industrial production in individual months from +1.9 to +4 percentage points (p.p.), in 2024 it was adjusted downward from -1.7 to -3.8 ( p.p.).

The most significant impact on industrial production was a significantly higher year-on-year increase in power in the energy sector, i.e. in electricity, gas, steam and air-conditioning supply. In the first holiday month of this year, production related to energy increased by almost 19%. The contribution³⁾ is an indicator that takes into account the rate of growth/decline in combination with the weight of the sector in the structure of the industry and hierarchizes the influences of individual sectors on the entire sector, this was an impact of plus 1.79 percentage points (p.p.) to the sector´s result. After the adjustment of price deflators, the energy industry did not show as significant year-on-year growth this year as the data showed before the revision, but even so, energy contributed the most to industrial growth in July.

The positive development of the entire industrial production was also affected by the growth in manufacture of transport equipment by 7.7% (contribution +1.71 p.p.). The third most significant impact on the overall result was a more than 30% increase in other manufacture (contribution +1.10 p. p.).

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Among the sectors that hampered the growth of industry by slowing down the performance, the most significant impact was the more than 27% decrease in manufacture of coke and petroleum products (contribution -0.92 p.p.). The industry showed a significant year-on-year decrease in production for the third time in a row. The industry was also negatively affected by a 7.6% decrease in manufacture of machinery n.e.c. (contribution -0.69 p.p.).

On a month-on-month basis (compared to June 2024), after seasonal adjustment, industrial production decreased by 2.4%.

In the first seven months of this year, industrial production dropped by 1.7%. 9 out of a total of 15 monitored sectors (special industrial groups)²⁾ had a lower performance than in the corresponding period last year. Of the industrial sectors that contributed the most to the overall decline in production, the most significant was a decrease in manufacture of machinery by 10.7% (contribution -0.95 p.p.) and a decrease by 5.3% in metal production (contribution -0.95 p.p.). A higher slump was prevented by more than 10% growth in manufacture of electrical equipment (contribution +0.56 p.p.) and by a 9% increase in food production (contribution +0.45 p.p.).