The production of manufacturing fell by 8.6% in October

According to Hungarian Central Statistic Office In October 2008, industrial gross output decreased by 7.2% compared to October 2007, the index adjusted for working days was equal to the non-adjusted one.

 In the first ten months of 2008, the
volume of production was higher by 1.9% than in the same period of
the previous year. In October, the volume of industrial production –
according to seasonally and by working-day adjusted indices – was
below the level of the previous month by 1.9%.

Industrial export sales grew by 2.9% in
the first ten months of 2008 and declined by 8.7% in October compared
to the same period of the previous year. In the tenth month of the
year, the greatest exporter (representing more than four tenth in the
export of manufacturing), the manufacture of electrical and optical
equipment had an export volume decline of 8.9%. The export volume of
transport equipment − the other significant subsection, accounting
for nearly one fourth in the export sales of manufacturing − fell
at a faster rate than the average, by 12.6%.

Industrial domestic sales stagnated in
the first ten months and declined by 6.1% in October. Domestic sales
of manufacturing decreased by 2.3% in the first ten months of this
year and by 6.7% in October compared to the same period of the
previous year.

In October 2008, the production of
manufacturing fell by 8.6%, while that of mining and quarrying
(having little weight) rose by 23.8% compared to the same month of
2007. The output of electricity, gas and water supply was 7% higher
than the same month a year ago, partly because of the increase in
domestic production substituting the import.

In October, growth was observed in two
out of the fourteen subsections of manufacturing. Manufacture of
machinery and equipment had a volume increase of 3%, while that of
wood and wood products had a volume increase of 2.3% compared with
the same period a year ago, in case of both subsections primarily due
to outstanding export sales. Among the subsections of manufacturing
having significant weight the production of food, beverages and
tobacco (representing more than one tenth of manufacturing) fell
remarkably, by 14.6%, first of all due to a drop in domestic sales
accounting for almost three quarters of total sales. Manufacture of
transport equipment (accounting for one sixth of
manufacturing) had a considerable output decline of 12% compared to
the same month of the previous year. Manufacture of electrical and
optical equipment (accounting for nearly one third of manufacturing)
had an output decline of 6.2%, primarily due to unfavourable
tendencies in export sales. A moderate decrease was observed in
manufacture of chemicals, chemical products and man-made fibres
(6.5%), partly due to a declining demand for plastic in primary
forms. Among the subsections, the manufacture of textiles and textile
products suffered the largest fall (23.5%).

In October 2008, total new orders in
the observed branches of manufacturing fell by 11.3% compared to the
same month in 2007. The volume of new export orders decreased by
11.4%, while that of new domestic orders declined by 10.6%. The
volume of the total stock of orders exceeded the level of October
2007 by 2%.

In the first ten months of this year,
the labour productivity of industrial enterprises with 5 or more
employees was 2.1% higher than in the same period of 2007, in
addition to a 0.4% decline in the number of employees.

In the first ten months of 2008, among
the regions of Hungary the industrial production decreased in three –
in Central Transdanubia (0.7%), in Northern Hungary (2.5%), as well
as in Southern Great Plain (3.2%). –compared to the same period of
2007. In the other regions, volume increases of 0.3% to 3.8% were
recorded. In October, industrial production increased only in
Southern Transdanubia (1.2%), falls were observed in the other
regions.