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Industrial output in Hungary rose by an annual 8.7% in May according to unadjusted data, the Central Statistical Office (KSH) said in a first reading of data. Industrial output rose by 6.1% according to workday-adjusted data, KSH added. In a month-on-month comparison, industrial output was up by a seasonally and working day-adjusted 1.4%.
Growth in industrial production was broad-based in May. The pace of output growth accelerated in vehicle manufacturing. Output in the computer, electronics and optical products segment and in the food, drink and tobacco products segment grew, but in both cases the pace was below the industrial average, KSH added.
In the first five months of the year, industrial output was up 6.7% from a year earlier.
Analyst Péter Virovácz of ING Bank said May industrial output growth was above expectations. For the year output could grow by 6% as maintaining the 6.7% growth seen in the first five months is a significant challenge in the face of a weak external economic environment. K&H Bank chief analyst Dávid Németh said based on current prospects industrial output could grow by 5% in 2019. During the rest of the year new production capacity will come online because of earlier investments but this could be offset by a weaker European economy. Orsolya Nyeste of Erste Bank said industrial output is proving to be resilient taking into account a slowdown in Europe and deteriorating business confidence. In the short term industry could continue to perform well but in the long run it could be affected by the slowdown in Germany.