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Industrial output in Hungary dropped by an annual 1.4% in June according to unadjusted data, the Central Statistical Office (KSH) said in a first reading of data. Industrial output rose by 4.1% according to workday-adjusted data, KSH added. In a month-on-month comparison, industrial output was down a seasonally- and workday-adjusted 1.8%.
The decline in industrial production was broad-based in June. The pace of output growth slowed in vehicle manufacturing and the food, beverages and tobacco products segment while output in the computer, electronics and optical products segment decreased, KSH said. In the first six months of the year, industrial output was up 5.4% from a year earlier.
Analyst Gergely Suppan of Takarékbank said the disappointing June industrial output data show that Hungary’s industry follows the weakening European and German business trends while still outperforming those, with support from the growing production of new car models, the installation of new export capacities and strong domestic demand. Takarékbank’s analysts forecast full-year industrial output growth of 5.5-6% in 2019 compared to 3.6% last year. Péter Virovácz of ING Bank said the latest industrial output data suggest a slowdown in the pace of economic growth, with industrial output growth decelerating to 5.5% in the second quarter. All signs show that GDP growth must have peaked in the first quarter and a gradual slowdown in the pace of economic growth is already under way, he added.