According to the first estimate of the Central Statistical Office (CSO), production increased by 59.2 percent, while based on seasonally and working-day adjusted data, industrial output fell 3.2 percent from March.
Production volumes were slightly above pre-epidemic levels. As early as October, industrial production had almost completely recovered from the crisis caused by the epidemic. Compared to the 2015 average, industrial production increased by 16.6 percent, while it was 42.6 percent higher than the 2010 average production level. Meanwhile, industrial production grew by 13.8 percent in the first four months.
Almost all sectors of manufacturing contributed to the significant expansion.
Vehicle production grew exponentially due to the temporary plant shutdowns in the same period last year. Automotive demand is mainly being driven by Far Eastern markets, especially the Chinese market. External demand will also be substantially increased by the gradual opening of the U.S. economy. At the same time, the emergence of deferred demand and the replenishment of inventories are already visible, so we can expect a further gradual recovery in industrial production in the coming months. This may also be supported by the expected commissioning of new capacities, mainly in the battery and automotive industries.
Carmakers’ production has exceeded pre-epidemic levels since August last year; it is particularly encouraging that new orders have increased significantly from the autumn months, and car manufacturers have reported very favorable third, fourth and incredible first quarter results. The short-term outlook is extremely favorable, supported by the explosively high German manufacturing Purchasing Managers’ Index, which continued to reach a historic high in March and the eurozone in May.
On the other hand, production of computer, electronic, optical products, as well as food, beverages and tobacco products, rose below the industry average.
This year, industrial production overall should make a significant contribution to GDP growth of more than 3 percentage points, Gergely Suppan, senior analyst at Takarékbank, said.