Industry of the SR slowed down significantly in November, the year-on-year lagging increased by more than 10%

In the eleventh month, industrial production of the SR was also affected by the long-term slump of the energy industry, and production was also moderated by manufacturers of transport equipment, manufacturers of rubber and metallurgists.

In November 2022, industrial production¹⁾ decreased by 10.8% year-on-year, the industry increased its lagging behind the last year's performances. The assessment of the industrial performance over a longer period of time allows a comparison with the average in the base year 2015. Currently, in November 2022, the Slovak industry produced an almost 14% higher value than the average in 2015. It was a significantly lower performance than the performances in November of the key sector of the Slovak economy in the previous five years.

In total, out of the 15 monitored sectors of the Slovak industry (special industrial groupings)²⁾, most of the sectors recorded significantly lower performance than a year ago, including the decisive sectors.

The current result of the sector after taking into account a growth/decrease in combination with the weight of the sector in the structure of industry³⁾ in the eleventh month was most significantly affected by a decrease in production in the energy sector together with mining and quarrying², while the energy sector is one of the largest sectors in terms of share in the Slovak industry and has continued to decline significantly for the eleventh month year-on-year. The decline in manufacture of transport equipment by 8.7% (contribution -2.12 percentage points/p.p. to the overall result of the industry), in manufacture of rubber and plastic products by 17.6% (contribution -1.85 p.p., decrease), in manufacture of metals and fabricated metal products by 14.7% (contribution -1.65 p.p.), and also year-on-year lower manufacture of machinery and equipment by 5.8% (contribution -0.55 p.p.) had an important impact as well.

Only four sectors recorded higher year-on-year performance during November, the most significant effect was a slight year-on-year growth of 6.6% in manufacture of electrical equipment (+0.46 p.p. contribution, and a very dynamic almost 50% growth of the proportionally smaller sector in manufacture of pharmaceutical products. A slightly better performance in manufacture of coke and petroleum products⁴⁾ also affected it positively.

On a month-on-month basis (compared to October 2022), seasonally adjusted, industrial production decreased by 1%.

In terms of structure, according to the main industrial groupings, production related to energy decreased by almost a quarter year-on-year, and production for intermediate goods also decreased by more than 10%. Production of capital goods and production of durable consumer goods decreased by single-digit number. The increase was only in production of non-durable consumer goods.

In total, for the first 11 months of 2022, industrial production fell by 4% year-on-year. The most significant impact on development was a decrease in the energy sector together with mining, which created the absolute majority of this decline. The remaining structures of industry - i.e. manufacturing covering 13 sectors of industry (special industrial groupings)²⁾ were in a slight year-on-year decrease, while the balance was most significantly affected by a drop in manufacture of metals and fabricated metal products by 5% (contribution -0.59 p.p.) and also in manufacture of transport equipment by 2.1% (contribution -0.48 p.p.). The third strongest impact was a slight decrease in production of the rubber industry, including manufacture of plastic products. The most significant positive impact was a 9.2% increase in manufacture of electrical equipment in the first 11 months (contribution of 0.65 p.p.)

According to the main industrial groupings, production related to energy decreased by more than 21%, slight year-on-year decreases were recorded in production of durable consumer goods, production for intermediate goods and production of capital goods. Only production of non-durable consumer goods was higher, year-on-year, in total, in the first 11 months.