KSH: industrial production fell by 2.5 percent in January compared to the same period of the previous year, and expanded by 1.5 percent compared to the previous month

A decline occurred in the vast majority of manufacturing sub-sectors.

Based on seasonally and working day adjusted data, industrial output was 1.5 percent higher than in December 2025.

In January, industrial exports its volume increased by 0.5 percent compared to a year earlier. The export of vehicle manufacturing, which represents 31 percent of the manufacturing industry’s export sales, increased by 1.3 percent, and that of computer, electronic, and optical products, which has a weight of 18 percent, increased by 9.5 percent.

The domestic sales of industry decreased by 2.8 percent, and that of the manufacturing industry by 7.9 percent compared to the same month of the previous year.

The production of the manufacturing industry, which represents the decisive (93 percent) weight within industry, decreased by 2.6 percent, and the output of the mining industry, which has a small weight, decreased by 45 percent, while the production of the energy industry (electricity, gas, steam supply, air conditioning) increased by 6.7 percent.

The volume of vehicle production, which has the largest weight and represents 26 percent of manufacturing production, decreased by 0.2 percent compared to the same month of the previous year. The production of road vehicles increased by 3.4 percent, and the production of road vehicle components decreased by 3.1 percent.

The production of computer, electronic and optical products, which accounts for 14 percent of manufacturing production, increased by 17.4 percent. Looking at the two largest sub-sectors, the production of computers and peripherals expanded by 90 percent, while the production of electronic components and circuit boards declined by 27 percent.

The production of electrical equipment, which accounts for 10 percent of manufacturing, exceeded the low base level of January 2025 by 10.4 percent. Of the two most significant sub-sectors, the volume of battery and dry cell production increased by 27 percent, and that of electric motors, generators, distribution and control devices increased by 10.7 percent.

The production of food, beverages and tobacco products, which accounts for 13 percent of the manufacturing industry, decreased by 5.3 percent compared to the same month of the previous year, with both domestic and foreign sales declining.

The production of meat processing, preservation and meat products, which represents the largest (24 percent) weight, fell by 4.3 percent compared to January of the previous year. Production in seven other sub-sectors also decreased, by between 5.2 and 24 percent, the least in the production of vegetable and animal oils, and the most in the processing and preservation of very small amounts of fish. In the other three sub-sectors, output increased between 0.7 and 39 percent, with the largest increase in tobacco production and the smallest increase in feed production, the Central Statistical Office reported.

The report noted that of the two medium-weight sub-sectors, the production of rubber, plastic and non-metallic mineral products fell by 12.2 percent, and the production of metal raw materials and metal processing products fell by 1.0 percent compared to the same month of the previous year.

The decline in the production of chemicals and products, which represent 4.4 percent of the manufacturing industry, has been ongoing since April 2025: in January, output was 27 percent lower compared to the same month of the previous year, with a significant decrease in the vast majority of sectors. registered.

Of the sub-sectors, coke production and petroleum refining, which account for 2.4 percent of manufacturing production, fell by the largest amount, by 33 percent, from a year earlier, with sales falling significantly in both sales directions.

The report also states that industrial production increased in three regions and decreased in five compared to the same period of the previous year. The largest volume expansion, 11.0 percent, was registered in Central Transdanubia, and the most significant decline, 19.1 percent, was registered in the Southern Great Plain.