Slovak industry once again achieved negative values, with most of the dominant sectors causing its decline
Even the more than 50 percent year-on-year increase in production related to energy could not compensate for the declines in the dominant manufacture of machinery, metals and transport equipment. In June of this year, significant double-digit drops were recorded by up to a third of sectors.
In June 2024, industrial production1) of the SR decreased by 2.4% year-on-year. The development of the industry has fluctuated considerably since the beginning of the year, it recorded a decline for the second time. In total, 10 of the 15 monitored sectors2) recorded a year-on-year lower performance, among them almost all the important sectors of Slovak industry.
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The most significant negative impact on industrial production in the sixth month of this year had a decrease in manufacture of machinery by 20.5%. The contribution3) is an indicator that takes into account the rate of growth/decline in combination with the weight of the sectors in the structure of the industry and hierarchizes the influences of the individual sectors on the entire sector, this was an impact of minus 1.9 percentage points (p.p.) on the sector´s result. This sector has shown an annual decrease since the beginning of the year, but it was currently the highest.
The industry was also negatively affected by a more than 9% decrease in one of the core sectors of Slovak industry, manufacture of metals (contribution -1.69 p.p.). The sector reported a year-on-year decline this year for the fifth consecutive months. After two months of relatively high growth, manufacture of transport equipment also entered a year-on-year decline, namely by 3.5% (contribution -0.96 p.p.).
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The increase in performance in energy sector up to over 50%, i.e. in electricity, gas, steam and air-conditioning supply (contribution +3.19 p.p.), avoided more considerable decrease in industry. The year-on-year significantly higher performance has continued since the beginning of this year, but the industry has not yet reached more than half the increase.
Over 11% growth in other manufacture also contributed to the positive development of the entire industry (contribution +0.43 p.p.). Manufacture of chemicals and chemical products also recorded almost by 10% higher production (contribution +0.25 p.p.).
On a month-on-month basis (compared to May 2024), after taking seasonal effects into account, industrial production increased by 2.1%.
In the first half of this year, industrial production decreased by 0.1%. 10 out of a total of 15 monitored sectors (special industrial groups) had a lower performance than in the same period last year3). As for the industrial sectors that contributed the most to the overall decrease in production, the most significant decrease was in manufacture of metal by 6.4% (contribution -1.18 p.p.) and by more than 11% decrease in manufacture of machinery (contribution -1.01 p.p.). A higher drop was avoided by almost 31% increase in electricity and gas supply (contribution +2.52 p.p.) and a 10.5% rise in manufacture of electrical equipment (contribution +0.58 p.p.).
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