Hungary industrial output climbs 4.0 pc in June

Hungary’s industrial output rose by an annual 4.0 percent in June, the Central Statistical Office (KSH) said in a first reading of data on Friday.

Adjusted for the number of workdays, output was up 6.5 percent.

The unadjusted increase slowed from an 8.8 percent rise in May. The adjusted increase accelerated from 6.2 percent.

Month-on-month, output fell a seasonally and workday-adjusted 1.2 percent.

In January-June, output rose by an annual 5.6 percent.

Commenting on the data, economy ministry deputy state secretary Gyula Pomázi told public news channel M1 that industrial output was likely to increase at a similar rate to June’s increase over the remainder of the year. Pomázi attributed the June data to Hungarian companies’ capacity utilisation rates, high investment rates in the first half of the year and high business confidence among international economic players.

He said the automotive sector continued to be the biggest driver of industry in the country and highlighted strong H1 performances from the chemical, pharmaceutical and the manufacturing industries.

ING Bank chief analyst Péter Virovácz said the June increase was under expectations, but the first-half rise was remarkable. The short-term outlook and external economic environment appear favourable, though the labour market shortage could limit the pickup in production, he added.

Takarekbank analyst Gergely Suppán said industrial growth could reach the double digits in some months during the second half of the year, helped by a low base and new capacity. He put the full-year increase at 7 percent.

Source: MTI