Hungary industry has stamina, output grows 0.3% m/m in July

There was only a single month this year when Hungary’s industrial production contracted on a monthly basis, which implies that the sector has largely recovered the negative shocks of last year and the impact of rising vehicle production capacities is increasing.

At the same time this dynamics is not too high yet since it sufficed only to take back the IP print close to where it was in early 2012. Therefore it is no surprise that the volume of production was on average 0.7% lower in January-July than in the same period a year earlier. In our view, this number will gradually rise over the next few months and the IP figure for the whole year will be higher than in 2012.

The export figures tell a similar story. There has been some recovery there too, but for now this growth is so uncertain that two weaker months could revise the trend to stagnation again.

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• KSH,
• economy,
• industrial production,
• industry,
• statistics