June industrial export drop cause for concern - analysts

Automotive

The drop in Hungary's industrial exports in June does not bode well for growth in the future, analysts said on Friday.

Hungary's year-on-year industrial output climbed a working day-adjusted 1.0% in June, slowing from a 2.3% rise in May, the Central Statistics Office (KSH) said in a second reading in the morning. Unadjusted output fell 1.4%.

Exports edged down 0.6% year-on-year in June, following an 11.2% rise in May. Domestic sales declined 6.4% after falling 0.9% in the previous month.

Sándor Jobbágy of CIB Bank said the fall in exports was a concerning sign, adding it was conceivable that big increases in earlier months came from accrued inventories.

Jobbágy put full-year industrial output at 6.5%.

Raiffeisen's chief analyst Zoltán Török said the 26% fall in exports of the computer, electronics and optical equipment segment, which accounts for almost one-fourth of manufacturing sector exports, was a warning sign. A fall in exports by the Hungarian unit of handset maker Nokia as well as by consumer electronics makers in the cities of Székesfehérvár and Tatabánya could be behind the decline, he added.

Török put full-year industrial output at 4.8-6.5%.

ADVERTISEMENT

Reforms to raise productivity would strengthen recovery - OE... Analysis

Reforms to raise productivity would strengthen recovery - OE...

Meeting called to address Pegasus spyware lacks quorum  Parliament

Meeting called to address Pegasus spyware lacks quorum 

Skanska commercial dev unit names new EVP of operations Hung... Appointments

Skanska commercial dev unit names new EVP of operations Hung...

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.