Serbia’s industrial production remained almost unchanged, as strong performance in capital goods and automotive manufacturing contrasted with declining output in consumer-oriented industries. Overall industrial production fell 0.5% year-on-year in August, following a 2.3% contraction in July, leaving cumulative output just 0.1% above the level recorded a year earlier.
Manufacturing production decreased 1.8% in August, while mining output increased 6.7%. Electricity, gas and steam supply rose 0.8%, recovering from an 8.8% annual decline in July.
Capital Goods and Automotive Manufacturing Lead Growth
Production of capital goods increased 9.8%, while durable consumer goods manufacturing contracted 12.5% over the same reporting period. The automotive industry recorded particularly strong results, with motor vehicle and trailer manufacturing output rising 41%. The sector’s annual growth rate slowed to 12.5% in August, indicating a moderation from its cumulative performance. The contrasting results highlight the uneven distribution of industrial activity, with investment-related manufacturing outperforming several other production categories.
Capital Goods Exports Outpace Overall Trade Growth
Serbia’s export figures also reflected the strength of investment-related industries. Capital goods exports rose 27.2% to approximately €6.72 billion, significantly exceeding the 8.8% growth in total merchandise exports.
The export performance underscores the importance of capital-intensive and export-oriented manufacturing activities to Serbia’s industrial economy. Industrial suppliers, equipment manufacturers and logistics operators are among the businesses connected to these production and trade flows. The limited increase in overall industrial output contrasts with the strong expansion in capital goods exports, as manufacturing sectors continue to record divergent results.
Industrial Performance Remains Uneven
Serbia’s manufacturing performance remains concentrated in a narrower group of industries, particularly automotive production and capital goods. Continued activity in these segments will be relevant to industrial suppliers and companies serving export markets. At the same time, weaker output elsewhere leaves overall industrial production exposed to changes in demand and orders from major European customers. Despite strong export growth, the figures show that a broad-based recovery in factory production has yet to emerge.
