In June, industry resulted in positive numbers, most of its sectors were growing

The double-digit growth of the decisive manufacture of transport equipment was also supported for the second month by the energy sector, which overcame the base effect of a significant quarter-on-quarter decline that persisted throughout 2022. Among the large sectors, growth was dampened only by the ongoing decline in manufacture of rubber products.

Industrial production¹⁾ of the SR increased by 3.6% year-on-year in June. After two months of year-on-year decline, Slovak industry thus increased its performance, it was the second month of growth since the beginning of the year. In total, out of 15 monitored sectors of Slovak industry (special industrial groupings)²⁾, 8 had a higher performance than a year ago, including most of the important sectors.

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The result was most significantly affected by increases in manufacture of transport equipment by 12.2%. The influence of sectors is expressed through the so-called contributions³⁾, which take into account the rate of an increase/decrease combined with the weight of the sector in industrial structure and enable the hierarchization of the effects of individual sectors, this was an impact of plus 3.61 percentage points (p.p.) on the industry result. The positive result was also supported by growth in manufacture of electrical equipment by 13.9% (contribution +1.05 p.p.) and also in manufacture of coke and petroleum products by 52.2% (contribution +0.84 p.p.). The growth of the decisive sector of the Slovak economy was also supported by the energy sector, which after more than a year of dynamic year-on-year declines has been growing again since May, in June the supply of electricity, gas and steam increased year-on-year by 7.5% (+0.63 p.p.).

On the contrary, decreases in manufacture of rubber and plastic products by 12.1% (contribution -1.38 p.p.) and also more than 10% decreases in manufacture of wood and paper products, and in other manufacture, repair, of machinery had a dampening effect.

On a month-on-month basis (compared to May 2023), seasonally adjusted, industrial production decreased by 1.2%

In terms of breakdown according to the main industrial groupings, the production related to energy increased by 14.1% year-on-year, and the production of investment funds (by 5.7%) and the production of short-term consumption goods (by 2%) also increased. There was a decline in the production of durable goods (by 7.8%) and production for intermediate consumption (by 1.1%).

In total for the first six months of 2023, industrial production dropped by 1.5% year-on-year. Out of a total of 15 sectors, eight had a year-on-year lower performance. Only four sectors showed a decrease by more than 10%, the most significant impact was the decrease in manufacture of rubber and plastic products by 10.6% (contribution -1.12 p.p.), and the manufacture of computer and electronic products registered more than a quarter of the decrease. On the contrary, the most positive impact was the growth of manufacture of transport equipment by 5.6% (contribution +1.55 p.p.).

The Statistical Office of the SR warns users that together with the publication of data for June 2023, it has published a revision of the values of industrial production for the previous months (since 2008) based on the delivery of new data and the admission of errors by reporting units.