Serbia’s industrial production increased 0.3% year on year in May 2026, while output for the first five months of the year was 0.6% higher than in the corresponding period of 2025. The limited overall increase reflected sharply different performances across industrial sectors and product categories.
Manufacturing recorded the strongest contribution among the major industrial sections, with output rising 1.4% from May 2025. Mining production increased by 3.2%, while electricity, gas, steam and air-conditioning supply declined 8.6%. The contrasting results mean that the overall industrial increase was not evenly distributed. Manufacturing and mining expanded, while the energy-related component represented a significant offset to their gains.
Capital goods lead product-group growth
The structure of output by economic purpose showed particularly strong growth in capital goods. Their production increased 5.9% year on year in May. Energy production was also 1.2% higher than in May 2025. Other major categories recorded declines, with intermediate goods excluding energy falling 0.5% and non-durable consumer goods decreasing 0.9%. The largest contraction was recorded in durable consumer goods, where production fell 12.8% compared with a year earlier.
The divergence between capital goods and consumer-oriented production points to significantly different conditions across industrial activities, with investment-related output expanding while durable consumer-goods production recorded a substantial decline.
Manufacturing remains above its 2025 average
Compared with the average level recorded during 2025, Serbia’s total industrial production in May was 0.9% lower. Manufacturing nevertheless remained 5.2% above the 2025 average. Mining and energy production were both below their respective 2025 average levels. The figures leave manufacturing as the principal source of resilience within the industrial sector, while the performance of mining and electricity generation continues to influence the overall result.
Industrial inventories rise sharply
Inventory data show another significant change in the industrial sector. The average stock of industrial products during January-May 2026 was 12.1% higher than during the same period of 2025. The increase was particularly pronounced in mining, where average inventories were 50.2% higher year on year. Higher inventories can reflect preparations for future sales, but they can also indicate slower turnover of products. The stock figures therefore need to be considered alongside orders, exports and turnover when assessing the direction of industrial activity.
Foreign-market turnover outpaces domestic sales
Industrial turnover in May reached an index level of 111.4, with the average for 2025 set at 100. Turnover generated on the domestic market was 6.9% above the 2025 average, while turnover from non-domestic markets was 16.4% higher. The stronger performance of foreign-market turnover highlights the role of external demand for Serbian industrial companies and corresponds with the rapid increase in merchandise exports.
Serbian industry therefore remained in positive territory in May, but the gains were concentrated in particular parts of the sector. Manufacturing and capital goods provided the strongest support, while energy, intermediate goods and especially durable consumer goods recorded weaker results. The development of inventories alongside new orders, exports and turnover will remain relevant to the assessment of whether current production levels translate into increased sales.
