Industrial production up 5.4% in September

Automotive

In September 2017, the volume of industrial output rose by 5.4% year-on-year, according to a first estimate of monthly data from the Central Statistical Office (KSH). Based on working day-adjusted data, industrial production grew by 8.1% in September.

The volume of industrial production in September – according to seasonally and working day-adjusted indices – was below the level of the previous month by 0.7%.

In January-September, industrial output was up 5.2% year-on-year compared to the same nine-month period of last year.

Speaking to state news wire MTI, TakarékBank analyst Gergely Suppan said he expects industrial output to grow rapidly in the months ahead due to a low base, new capacities stepping in and a pickup in Europe. Output could grow over 5% this year, he said, and could grow more in 2018, supported by new vehicle industry capacities starting up at Audi and Mercedes.

Labor shortages could prove an obstacle to growth, however, which could give a boost to investment in technology and machinery, Suppan added.

The monthly changes are not really convincing, said Gergely Ürmössy of Erste Bank, adding that he does not expect any significant acceleration for the remainder of the year. The Erste analyst put annual output growth at below 5%.

A second estimate of industrial production data for September 2017 will be released by the KSH on November 13.

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