Hungarian industrial production still cannot recover

Industrial output in April rose by 6.4 percent year on year, according to unadjusted data, though working-day adjusted figures showed a 2.4 percent decline as there were three more working days this month than in April last year, the Central Statistical Office (KSH) said on Friday in a first estimate.

Industrial production still cannot recover

Seasonally and working day-adjusted data show industrial output fell by 0.7 percent month on month.

Most manufacturing sub-sectors such as vehicle manufacture, computer, electronic and optical product manufacture, as well as food, beverage and tobacco, added to output, while output of electrical equipment shrank, according to KSH.

IIndustrial output in March-April was 1.7 percent lower than in the same period of 2023.

Commenting on the data, the national economy ministry said Hungarian industry continued to be weighed by an ailing European economy affected by the war’s fallout.

The statement said the Hungarian economy’s fundamentals were healthy as the twin deficits had dissolved and real wages had been growing steadily for six months, while more inactive people were entering the workforce.

Improved domestic demand as households gradually abandon caution over inflation and government measures supporting investments would help to get industry back on track, it added.

Real wages in foreign markets are also improving and interest rates abroad may decrease, the ministry said, so a small improvement in other economies are likely in the second half of the year, providing a modest fillip to Hungarian manufacturers.

The economy is expected to grow by 2.5 percent in this year and by 4.1 percent in 2025, the statement said.

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