Hungary: Industrial production strengthens notably in December
February 13, 2019
According to revised data released by the Hungarian Central Statistical Office (KSH) on 13 February, industrial output rose a working-day adjusted 5.7% year-on-year in December, the strongest reading in almost a year. The print confirmed the preliminary estimate and came in above the 3.7% increase in November. December’s expansion came on the back of strong growth in the manufacturing sector, which makes up over 90% of the index, a healthy expansion in energy production, and an over 40% jump in the mining and quarrying sector—which has significantly less influence on industrial output than the manufacturing sector.
In terms of sub-sectors, buoyant growth was recorded in the manufacture of transport equipment, which represents more than one-quarter of manufacturing output, and of computer, electronic and optical products. Moreover, the manufacture of food products, beverages and tobacco products, as well as of rubber and plastics products recorded sizable expansions. On the other hand, the manufacture of textiles, wearing apparel, leather and related products and of basic pharmaceutical products contracted in the month. Meanwhile, in terms of sources of demand, domestic sales rose again at a strong pace, while exports expanded at a more moderate pace.
In month-on-month, seasonally- and working-day adjusted terms, industrial production jumped 2.5%, contrasting November’s 1.1% drop.
Lastly, annual average growth in industrial production was stable at November’s 3.9% in December.
Hungary Industrial Production Forecast
FocusEconomics Consensus Forecast panelists expect industrial production to grow 4.5% in 2019, which is unchanged from last month’s projection. For 2020, the panel expects industrial output to expand 3.9%.