Hungary: Industrial production growth moderates in June
Industrial output grew at a notably softer rate of 18.6% in annual terms in June, following May’s 40.2% jump, according to a preliminary estimate. June’s slowdown partly reflected a less favorable base effect.
On a monthly basis, industrial output swung back into contraction, declining 0.3% in seasonally-adjusted terms in June (May: +3.4% s.a. mom). Meanwhile, the trend improved markedly, with annual average growth in industrial production coming in at 11.0% in June, from 8.5% in May.
Commenting on the outlook for industry in the near term, Peter Virovacz, Hungary senior economist at ING, said:
“Until supply chain disruptions have been resolved, we see sustained but moderated growth. The main reason behind the expected continuous improvement is the new production capacity in battery factories. And due to the dynamic expansion in global demand, the level of orders may continue to grow, though impeded production capacity means we can expect longer delivery times. Issues with capacity utilisation are more and more visible, as 41% of companies are now complaining about an insufficient number of workers and 31% see equipment and material shortages as factors limiting production.”