Business climate in Hungary remains best, but industrial output down again

The climate for doing business amid the current circumstances remains the most favourable for big companies, exporters, foreign-owned enterprises and those in the industrial sector, a gauge of sentiment by the the Economic Research Institute (GVI) of the Hungarian Chamber of Commerce and Industry (MKIK) shows. Meanwhile, the industrial output edged down 0.2pc in October. Adjusted for the number of workdays, output dropped 3.1pc.

GVI’s survey of 2,102 managers showed small companies, dependent on domestic sales and businesses in commerce and construction were most exposed to the impact of the economic crisis.

GVI’s confidence index stood at +22 points in October, unchanged from April but three points higher than twelve months earlier.

Industrial output edges down 0.2pc in October

Output of Hungary’s industrial sector inched down 0.2pc year-on-year in October, a first reading of data released by the Central Statistics Office (KSH) on Friday shows. Adjusted for the number of workdays, output dropped 3.1pc. Output of most manufacturing branches rose in October, KSH said. Among the biggest ones, output of the automotive and electrical equipment segments declined, while output of the computer, electronics and optical equipment and the food, beverage and tobacco segments increased, it added.

In a month-on-month comparison, output rose a seasonally- and workday-adjusted 2.0pc. For the period January-October, industrial output declined 3.9pc year-on-year. KSH will release detailed data on output of industrial sector branches on December 13.