Hungary: Industrial output picks up on external demand
September 15, 2011
In July, industrial production expanded a working-day adjusted 2.7% over the same month last year, which came in above the 1.0% increase recorded in the previous month and beat market expectations that had industrial production rising 1.8%. The improvement reflected higher output in manufacturing, which more than offset slower growth in mining and quarrying as well as a contraction in electricity, gas, steam and air conditioning supply. Industrial exports sales remained the main driver of growth and increased a working-day adjusted 2.8% (June: -0.6% year-on-year). In contrast, sales for the domestic market declined 9.3% (June: -6.4% yoy), remaining in negative territory for a tenth month in a row. A month-on-month comparison corroborates the improvement suggested by the annual figures, as industrial output rose a seasonally and working-day adjusted 0.8% over the previous month, which contrasted a 0.6% contraction recorded in June. The trend continues to point downwards, with annual average growth in industrial output decreasing from 9.5% in June to 8.7% in July.