Hungary: Industrial output slows in March on the back of soft manufacturing
May 14, 2018
According to preliminary data released by the Hungarian Central Statistical Office (KSH) on 14 May, industrial output rose a working-day adjusted 1.9% year-on-year in March, coming in well below the 4.1% increase recorded in February.
March’s softer output was driven by moderations in the manufacturing and mining sectors. The manufacturing sub-index, which makes up 95% of the weight of the overall year-on-year figure, softened to 1.1% growth in March (February: +3.7% year-on-year) on weaker manufacturing of vehicles. Production in the mining sector also eased in March, moderating from 69.8% in February to a still elevated 56.1%. Output of electricity, gas, steam and air conditioning picked up in March, however, to 6.4% growth (February: +2.9% yoy), mainly due to colder weather.
In month-on-month seasonally- and working-day adjusted terms, industrial production fell 0.7% in March, contrasting the revised 0.6% increase recorded in February (previously reported: +0.5% month-on-month).
Annual average growth in industrial production moderated from 5.7% in February to 5.0% in March.
Hungary Industrial Production Forecast
FocusEconomics Consensus Forecast panelists expect industrial production to grow 5.8% in 2018, which is up 0.2 percentage points from last month’s projection. For 2019, the panel expects industrial output to expand 5.3%.
Author: Lindsey Ice, Economist