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INDUSTRIAL OUTPUT GROWS 3.5% IN NOV

 

Hungary’s industrial output grew by an annual 3.5% in November, expanding for the third month in a row and accelerating from 0.6% in October, the Central Statistical Office (KSH) said. KSH said output of the automotive segment and the computer, of electronics and optical equipment increased, but output of food, drink and tobacco products declined along with most other segments. Adjusted for workday effects, output rose by 1.6%. In a month-on-month comparison, output declined a seasonally and workday-adjusted 1.2%. For the period January-November, output fell by an annual 7.0%. Senior analyst Gergely Suppan of Takarékbank said the industrial sector could continue to gradually pick up in the coming months. He said the sector could show annual growth in the fourth quarter of 2020 — partly due to the weaker base and also to calendar effect — so it could make a positive contribution of up to 1 percentage point to GDP after deteriorating economic growth in the previous two quarters. Takarékbank’s analysts expect industrial output to have contracted 5.5-6% in 2020 and show 14-15% growth in 2021. Senior analyst Péter Virovácz of ING Bank attributed the month-on-month decline to a slowdown at some major manufacturers. Looking ahead, the question is whether the usual December maintenance period would have a negative effect on output, he noted.