Hungaryʼs Industrial output rises 6.9% in January

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In January 2018, the volume of industrial output rose by 6.9% year-on-year, according to a first estimate of monthly data from the Central Statistical Office (KSH). Based on working day-adjusted data, production grew by 6.7%.

Industrial output in January – according to seasonally and working day-adjusted indices – was 1.5% above the level of the previous month.  Output rose after a 0.5% unadjusted decrease in December.

State news agency MTI cited an official at the KSH as saying that food industry output was up significantly as meat producers prepare for the Easter holidays.

Output increases in the automotive sector and electronics were around average, while metal processing, and production of construction materials and pharmaceuticals, were above average, the official added.

Speaking to state news wire MTI, ING Bank chief analyst Péter Virovácz said the calendar-adjusted annual growth was above the 5.4% market estimate. The automotive and electronics segments could have a strong year, he added, which could lay the foundations for as much as 8% industrial output growth in 2018.

TakarékBank analyst Gergely Suppan said industrial output growth could accelerate to 7.5% in 2018, from 4.8% in 2017, aided by capacity output increases especially in vehicle manufacturing. However, he added, labor shortages could hamper stronger output growth.

K&H Bank chief analyst Dávid Németh said that while last year the industrial sectorʼs performance was mixed, prospects are good and many segments could contribute to output growth this year.  He predicted that industrial growth could be above 5% in 2018.

A second estimate of industrial output figures for January 2018 will be published on March 14.

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