Hungary: Industrial output falls at sharpest rate since January in October
According to a second estimate by the Statistical Institute, industrial output dropped 2.7% compared to the same month a year earlier in October, which was a deterioration from September’s 1.7% decrease. October’s outturn marked the worst reading since January. October’s reading was largely due to a sharper drop in manufacturing output. In contrast, mining and quarrying production improved.
On a seasonally-adjusted monthly basis, factory output rose 0.3% in October (September: -0.3% mom), the best result since May. Meanwhile, annual average industrial production growth fell to 12.2% in October (September: +12.6%). This signals a worsening trend in the industrial sector.
Commenting on the release, Peter Virovacz, senior economist at ING, stated:
“Smaller sectors did not show strong enough growth in October to mitigate the drag from car and electronic manufacturing, as these are still suffering from spare parts shortages.”