Industrial output in Hungary grew by an annual 8% in March, according to both unadjusted and working day-adjusted data, the Central Statistical Office (KSH) said in a first reading of data.
In a month on month comparison, industrial output was up 1%, based on seasonally and working day-adjusted data. The pace of growth accelerated in vehicle manufacturing, but slowed slightly in the computer, electronics and optical products segment in March, KSH said. In the food, drink and tobacco products segment, output growth was close to the headline figure, it added. In the first three months of the year, industrial output was up 6.2% from a year earlier.
Analyst Orsolya Nyeste of Erste Bank said the first-quarter data suggest that the industrial sector must have made a strong contribution to GDP growth in spite of the slowdown on key export markets. She said she expects to see a slow improvement on main export markets from the second quarter and industrial performance should be supported by external factors as well in the remaining part of the year. Gergely Suppan of Takarékbank said the installation of new manufacturing capacities and the launch of production of new models could give further momentum to industrial output this year. Suppan forecast industrial output growth of about 6% for the full year 2019 compared with 3.6% last year.