Manufacturing Slumps: May 2024 Production Down 0.6%, Sales Decline 3.5%

  • Manufacturing production declined by 0.6% in May 2024 compared to May 2023.
  • Seasonally adjusted production dropped 3.2% in May 2024 versus April 2024.
  • Food and beverages saw the largest positive sales contribution, increasing by 3.6%.

Manufacturing production in May 2024 experienced a significant decline compared to May 2023. Seasonally adjusted data also showed a month-on-month decrease. The downturn was felt across various manufacturing divisions, with notable negative contributions from basic iron, steel, and motor vehicles.

Key Highlights:

  • Manufacturing production down by 0.6% in May 2024 vs. May 2023.
  • Seasonally adjusted production fell 3.2% in May 2024 vs. April 2024.
  • Manufacturing sales decreased by 3.5% in May 2024 vs. April 2024.

Detailed Analysis

Production Decline

In May 2024, manufacturing production decreased by 0.6% compared to May 2023. The largest negative contributions came from:

  • Basic Iron and Steel, Non-Ferrous Metal Products, Metal Products, and Machinery: Declined by 8.1%, contributing -1.8 percentage points.
  • Motor Vehicles, Parts and Accessories, and Other Transport Equipment: Dropped by 11.8%, contributing -1.2 percentage points.

Table: Largest Negative Contributions to Manufacturing Production (May 2024)

Division% ChangeContribution (percentage points)
Basic Iron and Steel, Non-Ferrous Metal Products, Metal Products, and Machinery-8.1%-1.8
Motor Vehicles, Parts and Accessories, and Other Transport Equipment-11.8%-1.2

Seasonally adjusted manufacturing production fell by 3.2% in May 2024 compared to April 2024. This followed a 5.2% increase in April 2024 and a 2.3% decrease in March 2024.

Table: Monthly Changes in Seasonally Adjusted Manufacturing Production

Month% Change
March 2024-2.3%
April 20245.2%
May 2024-3.2%

Three-Month Overview

In the three months ending in May 2024, seasonally adjusted manufacturing production decreased by 0.4% compared to the previous three months. Seven of the ten manufacturing divisions reported negative growth rates during this period.

Table: Three-Month Manufacturing Production Change

Division% ChangeContribution (percentage points)
Motor Vehicles, Parts and Accessories, and Other Transport Equipment-4.3%-0.4
Petroleum, Chemical Products, Rubber, and Plastic Products-0.9%-0.2
Glass and Non-Metallic Mineral Products-5.1%-0.2

The food and beverages division made the largest positive contribution, with a 2.0% increase, contributing 0.5 percentage points.

Sales Decline

Seasonally adjusted manufacturing sales decreased by 3.5% in May 2024 compared to April 2024. This followed a 5.8% increase in April 2024 and a 2.5% decrease in March 2024.

Table: Monthly Changes in Seasonally Adjusted Manufacturing Sales

Month% Change
March 2024-2.5%
April 20245.8%
May 2024-3.5%

Three-Month Sales Analysis

Seasonally adjusted manufacturing sales increased by 0.1% in the three months ending in May 2024 compared to the previous three months.

The food and beverages division made the largest positive contribution, with a 3.6% increase, contributing 0.8 percentage points. Conversely, the motor vehicles, parts and accessories, and other transport equipment division made the largest negative contribution, with a 3.1% decrease, contributing -0.5 percentage points.

Table: Three-Month Manufacturing Sales Change

Division% ChangeContribution (percentage points)
Food and Beverages3.6%0.8
Motor Vehicles, Parts and Accessories, and Other Transport Equipment-3.1%-0.5

Conclusion

May 2024 saw a challenging environment for the manufacturing sector. Both production and sales faced declines, influenced by various factors across key divisions. The data indicates a need for strategic adjustments to address the negative trends and bolster the sector’s recovery. The food and beverages division remains a bright spot, contributing positively amidst the downturn.