Hungary: Second estimate confirms slightly stronger industrial production growth in November
January 14, 2019
According to revised data released by the Hungarian Central Statistical Office (KSH) on 14 January, industrial output rose a working-day adjusted 3.5% year-on-year in November. The print confirmed the preliminary estimate and came in above the 3.3% increase in October. November’s expansion was due to healthy growth in the manufacturing sector, which makes up over 90% of the index. This more than offset a decline in energy production. Meanwhile, the mining and quarrying sector—which has significantly less influence on industrial output than the manufacturing sector—jumped by almost 40% in the month.
In terms of sub-sectors, muted growth was recorded in the manufacture of transport equipment, which represents more than one-quarter of manufacturing output; however, the manufacture of electrical equipment, as well as of rubber and plastics products recorded notable expansions. On the other hand, the manufacture of textiles, wearing apparel, leather and related products contracted again in the month. Meanwhile, in terms of sources of demand, domestic sales rose again at a strong pace, while exports expanded at a reduced pace.
In month-on-month, seasonally- and working-day adjusted terms, industrial production contracted 1.1%, contrasting October’s 2.0% jump.
Lastly, annual average growth in industrial production fell from October’s 3.9% to 3.8% in November, the weakest reading in over one year.
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%.