Hungary: Industrial production growth plummets in June
July 14, 2011
In June, industrial output grew a paltry working-day adjusted 1.0% over the same month last year, which came in well below the revised 2.3% expansion tallied in May (previously reported: +2.6% year-on-year) and marked the slowest pace of expansion since December 2009. The reading undershot market expectations that had industrial output increasing 5.5%, and was the result of slower growth in manufacturing, which fell from 2.3% in May to 0.5% in June. A sharp slowdown in export sales was mostly responsible for the dismal performance of the industrial sector. In June, industrial exports decelerated for the fourth consecutive month, increasing just 1.8% in working-day adjusted terms (May: +5.7% yoy). Meanwhile, production for domestic use fell 4.4% (May: -4.9% yoy), remaining in negative territory for the ninth month in a row. A month-on-month comparison corroborates the deterioration suggested by the annual figures, as industrial production declined a seasonally and working-day adjusted 0.6% over the previous month. The print followed a 0.7% contraction recorded in May. Owing to the subdued reading, annual average growth in industrial output decreased from 10.6% in May to 9.5% in June.