Production Sees Significant Year-Over-Year Increase
Manufacturing production increased by 5.3% in April 2024 compared to April 2023. This growth marks a notable recovery for the sector.
Several key divisions contributed to this positive trend. The petroleum, chemical products, rubber, and plastic products division saw a 5.1% increase, contributing 1.1 percentage points to overall growth.
The wood and wood products, paper, publishing, and printing division experienced a remarkable 9.9% rise. This sector added 0.9 percentage points to the total increase.
The basic iron and steel, non-ferrous metal products, metal products, and machinery division grew by 4.1%, also contributing 0.9 percentage points.
Food and beverages production rose by 4.0%, adding another 0.9 percentage points to the overall production growth.
The motor vehicles, parts and accessories, and other transport equipment division increased by 6.5%, contributing 0.6 percentage points.
Month-on-Month Production Surge
Seasonally adjusted manufacturing production increased by 5.2% in April 2024 compared to March 2024. This comes after a 2.5% decrease in March 2024 and a 0.6% decline in February 2024.
The monthly growth indicates a rebound after two consecutive months of declining production.
Quarterly Production Decline
Despite the positive April figures, seasonally adjusted manufacturing production decreased by 0.5% in the three months ending April 2024 compared with the previous three months.
Six out of ten manufacturing divisions reported negative growth rates over this period. The motor vehicles, parts, and accessories and other transport equipment division saw a significant decline of 9.1%, contributing -0.9 percentage points.
The textiles, clothing, leather, and footwear division also experienced a decrease of 5.1%, contributing -0.2 percentage points.
However, some divisions did show positive quarterly performance. The food and beverages division grew by 2.4%, contributing 0.5 percentage points. The petroleum, chemical products, rubber, and plastic products division increased by 1.3%, contributing 0.3 percentage points.
Sales Increase in April 2024
Seasonally adjusted manufacturing sales increased by 5.6% in April 2024 compared to March 2024. This follows a 2.2% decrease in March 2024 and a 0.9% increase in February 2024.
The April sales figures indicate a strong rebound after the previous month’s decline.
Quarterly Sales Growth
Seasonally adjusted manufacturing sales rose by 1.1% in the three months ending April 2024 compared to the previous three months.
The food and beverages division made the largest positive contribution with a 4.7% increase, adding 1.1 percentage points. The petroleum, chemical products, rubber, and plastic products division followed closely with a 5.0% increase, contributing 1.0 percentage points.
However, the motor vehicles, parts, and accessories and other transport equipment division experienced a decline of 5.3%, contributing -0.9 percentage points.
Detailed Division Performance
Below is a table summarizing the contributions of various divisions to the overall production and sales growth in April 2024.
| Division | Production Growth (%) | Contribution to Growth (percentage points) | Sales Growth (%) | Contribution to Sales Growth (percentage points) |
|---|---|---|---|---|
| Petroleum, Chemical Products, Rubber, Plastic Products | 5.1 | 1.1 | 5.0 | 1.0 |
| Wood, Wood Products, Paper, Publishing, Printing | 9.9 | 0.9 | – | – |
| Basic Iron and Steel, Non-Ferrous Metal Products, Machinery | 4.1 | 0.9 | – | – |
| Food and Beverages | 4.0 | 0.9 | 4.7 | 1.1 |
| Motor Vehicles, Parts and Accessories, Transport Equipment | 6.5 | 0.6 | -5.3 | -0.9 |
| Textiles, Clothing, Leather, Footwear | -5.1 | -0.2 | – | – |
Analysis and Outlook
Positive Trends
The 5.3% year-over-year increase in manufacturing production is a positive sign for the industry. It reflects robust growth in key sectors such as petroleum, chemicals, and food and beverages.
The month-on-month increase of 5.2% in April 2024 further underscores the sector’s recovery. It signals a rebound from the declines seen in the previous two months.
Challenges Ahead
Despite the positive monthly figures, the quarterly decline of 0.5% in production is a concern. Negative growth rates in six out of ten divisions indicate ongoing challenges in the industry.
The significant decline in the motor vehicles and textiles divisions highlights areas needing attention. Addressing these issues will be crucial for sustained growth.
Sales Recovery
The 5.6% month-on-month increase in sales in April 2024 is a strong indicator of market demand. This follows a challenging March, suggesting improved consumer confidence and market conditions.
The 1.1% quarterly sales increase, driven by food and beverages and petroleum products, points to specific sectors’ resilience.
Conclusion
April 2024 has been a mixed month for the manufacturing sector. While year-over-year and month-on-month figures show promising growth, the quarterly decline signals potential challenges.