Analysts: Industrial growth driven again by car makers

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Analysts: Industrial growth driven again by car makers

11. 06. 2019 14:21

The 6.3 percent industrial growth that took place in April was driven again by car makers, according to analyst L'ubomir Koršňak of UniCredit Bank. "Almost half of the year-on-year growth in industry is attributable to the automotive industry, which is benefiting from new production capacities and maintained a growth rate of 12.2 percent in April. At the same time, however, the new car maker on the market could be the only strong source of growth in the industry. A look at the data suggests that the condition of already established companies in the automotive sector may not be ideal, and that under the influence of a weaker demand in Europe, as well as of the life cycle of manufactured models, they're rather reducing, or keeping their production unchanged," he said. Katarina Muchová, an analyst at Slovenská sporiteľňa bank, thinks that the published industrial production figures have so far shown little impact of the Germany's weaker development.

Leaving the car industry aside, a dynamic double-digit year-on-year increase in production was posted by some branches of light industry too, such as food producing (18.7 percent) and furniture making (18.9 percent). On the other hand, in the long run, the textile and clothing industries are operating in the red, with a year-on-year decline in April of 14.7 percent, which is likely due to struggling with their loss of international competitiveness due to the pressure coming from rising labour costs.


Anca Dragu, Photo: TASR

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