Hungary’s industrial output up 1.5 pc in August
Industrial output in Hungary rose by an annual 1.5 percent in August, the Central Statistical Office (KSH) said in the first reading of data on Friday.
Adjusted for the number of workdays, output climbed by 4.5 percent.
In a month-on-month comparison, output rose by 3.8 percent, adjusted for seasonal and workday effects, at the highest monthly rate in one year.
Output grew dynamically in electronics but in the automotive sector it fell at a pace similar to July.
For the period January-August, output rose by an annual 3.6 percent.
Commenting on the data, Gyula Pomázi, deputy state secretary of the innovation and technology ministry, told public television that the outstanding output in August was driven by the automotive industry, the food industry, the production of medical equipment and suppliers of chemical and rubber industries. Pomázi forecast relatively stable growth for the rest of the year.
Péter Virovácz, senior ING Bank analyst, said that output growth in August compensated for the weak performance in the previous two months.
The automotive sector held back overall performance, Audi’s output was reduced as the launch of electric engine manufacturing was unable to offset the effect of missing permits for the VW group, he said.
Gergely Suppán of Takarékbank agreed adding that output could gradually pick up in the months ahead as the affected models and engines get the permits. A weak base and the launch of production at new manufacturing capacities would also help output. Domestic demand is strengthening and European and German indices forecast continued growth, he said.
Takarékbank projects industrial output growth to slow to a calendar-adjusted 4.5 percent this year from 5.3 percent in 2017.
Erste Bank senior analyst Orsolya Nyeste said that
adjusted twelve month and monthly output growth were much better than expected.
She said that because of the changes in regulations the automotive sector could contribute less than earlier thought to GDP growth this year. Market services and the construction would contribute, however, more, so the economy could still expand at a rate of 4.3 percent in 2018, she said.