Year-on-year output of Hungary’s automotive sector, an engine of industrial growth, jumped by 22 percent in September, picking up sharply from the previous month, a second reading of data released by the Central Statistical Office (KSH) on Wednesday shows.
Overall industrial output grew by annual 11.1 percent in September, KSH said, confirming figures released in a first reading of data on Nov. 8.
Output of the automotive sector, which accounts for 29 percent of total manufacturing output, had grown by only 1.8 percent year on year in August.
Output of the computer, electronics and optical equipment sector, which accounts for around 14 percent of manufacturing output, increased by an annual 26.1 percent in September.
Output of food, drink and tobacco products also rose by 10 percent. The sector generates around 11 percent of manufacturing output.
As we wrote in September, a parcel of land in Debrecen, in eastern Hungary, on which BMW will build a 1 billion euro plant was handed over to the German carmaker, read details here.
Takarékbank analyst Gergely Suppán said the prospects for industrial output growth were still favourable, evidenced by an increase in new orders. He also noted that
the Hungarian seasonally and working day-adjusted output growth in September was the highest in the EU.
K and H Bank analyst Dávid Németh said he was not surprised by the sector’s good performance in September following weak data in August as output growth has been uneven in recent years. Output growth is still mainly determined by domestic capacity expansions and foreign demand. Output will likely have grown by around 6 percent by year-end, he added.