Hungary: Industrial output growth accelerates on seasonal factors
July 14, 2011
In May, industrial production expanded 7.6% over the same month last year, which was above the 7.1% increase observed in April. The acceleration reflected a higher number of working days compared to the same month last year. In working-day adjusted terms, growth dropped markedly from 9.7% in April to just 2.6% and came in below market expectations of a 6.8% increase. Robust export sales continue to be the most important driver in the industrial sector. In May, industrial exports rose a working-day adjusted 6.2%, which marked a deceleration over the 10.1% expansion tallied in April. Production for domestic use remained in negative territory for the eighth month in a row and contracted 4.8%. A month-on-month comparison corroborates the deceleration suggested by the annual working-day adjusted figures, as industrial production declined a seasonally and working-day adjusted 0.8% over the previous month, which contrasted the 0.7% increase seen in April. Meanwhile, annual average growth in industrial output decreased from 11.5% in April to 10.5% in May.