Hungary: Industrial production decelerates amid weaker exports
February 9, 2011
In December, industrial output increased 6.0% in working-day adjusted terms over the same month the previous year. The figure marked a significant deterioration compared to November's 14.7% expansion (previously reported: 14.5%) and surprised the market on the downside, as analysts had expected industrial output growth to accelerate to 17.5%. According to the Central Statistics Office (KSH), the sharp deceleration was the result of a ?below-average? growth in exports, which moderated to a 12.5% expansion (November: +21.2% year-on-year). Meanwhile, sales in the domestic market remain weak, with production for domestic use recording only a minor improvement (November: -4.5% yoy; December: -2.2% yoy).