Industrial production up 3.6% y-o-y in 2018

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In December 2018, the volume of industrial output grew 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, December output rose by 5.7%.

The majority of manufacturing subsections contributed to the December growth, noted the KSH. Output of the biggest branch, vehicle manufacturing, rose at a faster pace than in the previous month. Output of the computer, electronics and optical equipment branch expanded significantly, while output of the food, beverages and tobacco branch rose to a lesser degree than a year earlier, the KSH said. 

Industrial output in December ÔÇô according to seasonally and working day-adjusted indices ÔÇô was 2.5% above the level of the previous month.

In 2018 as a whole, the volume of industrial production was 3.6% higher compared to 2017.

A second estimate of industry output data for December, and for 2018 as a whole, will be published on February 13.

Responding to the data, ING Bank╩╝s chief analyst P├ęter Virov├ícz said the December increase was higher than expected, especially in light of seasonal shutdowns. Industrial output growth could reach 4-5% in 2019, though weaker output in Germany and a slowdown in global growth are downside risks, he added.

Takar├ękBank analyst Gergely Suppan also noted the high December growth as a positive surprise, saying it may have lifted Q4 GDP growth to 5%. The introduction of new car models and added manufacturing sector capacities, along with robust domestic demand, could raise industrial output growth to 4.8% this year, he added.

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