Hungary’s industrial output drops 0.5% in December

Automotive

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The volume of Hungary’s industrial output was down by 0.5% in December, compared to the same month a year earlier; however, production rose by 1.9% adjusted for working days, a first estimate of data issued by the Central Statistical Office (KSH) shows.

The volume of industrial production in December – according to seasonally and working day-adjusted indices – was above the level of the previous month by 0.5%, the KSH said. 

In 2016, the volume of output increased by 0.9% year-on-year, the KSH added.

Takarékbank analyst Gergely Suppan told Hungarian news agency MTI that last yearʼs industrial output was weak. The performance of the vehicle manufacturing segment was especially poor, though the switchover to next-generation models could explain some of the downturn, he added. This year, the launch of new capacity, combined with the low base, could lift industrial output to 3.5-4%, he said.

ING Bank chief analyst Péter Virovácz told the news agency that the performance of Hungaryʼs industrial sector this year would largely depend on how other segments can counter the drop in production at Audiʼs local plant. The number of shifts at the plant has been cut from three to two as it makes the changeover to a new model, the news agency noted.

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