Hungary: Industrial output maintains strong pace
April 14, 2011
In February, industrial production expanded a working day adjusted 14.3% over the same month the previous year. The print came in above the 10.7% expansion observed in January and beat market expectations, which had output rising 11.7%. In line with the developments observed throughout 2010, February's expansion was underpinned by robust demand abroad, which rose a working day adjusted 18.4% year-on-year. Production for the domestic market showed signs of improvement but remained in negative territory, contracting 2.7% (January: -11.2% yoy). At the sector level, the acceleration was the result of higher output in the mining and quarrying sector as well as in manufacturing. In particular, mining output increased an extraordinary 43.4%, which, according to the statistical institute, came amid ?an outstanding performance in the groups of extraction of natural gas and support activities for petroleum and natural gas extraction.? A month-on-month comparison corroborates the improvement suggested by the annual figures, as industrial output increased 0.9% in seasonally adjusted terms over the previous month. In its latest inflation report from March, the Central Bank revised this year's growth prospects down a notch to 2.9%, while maintaining expectations that the economy will increase 3.0% next year.