Hungary Factory Output Falls

Hungary’s preliminary unadjusted industrial output grew by an annual 4.2% in June, somewhat overshooting a 3.95% forecast, after a 0.4% expansion in May, the Central Statistics Office, KSH, said on Tuesday, Reuters reported. In working-day adjusted terms output increased by 3.1% year-on-year. Output from the car industry, Hungary’s flagship industrial sector, grew at a below average pace, the KSH said. On a seasonally and working day adjusted basis, output fell by 1.2% from the previous month. “In the three main industries, electronics grew faster than the average in annual terms, the food industry was around the average, while the vehicle manufacturing sector grew slower than the average. “Among smaller industries, rubber, plastic and nonmetallic items manufacturing grew especially rapidly, as did metal raw materials and chemicals production.” The monthly IP readings are not overly high this year, but looking at them from a distance it seems that output is on a balanced, steady path. The situation is nuanced, though, as this year’s figures still do not reflect the impact of the traditionally summer recess when large manufacturers cut back production almost every year, sometimes in July, and less frequently in August.