In the latest quarter, production expectations rose to 57 points, and inventories stayed low, suggesting potential for growth if demand strengthens, yet overall capacity utilization is still only 68%. Domestic demand is especially weak.
The balance of domestic orders stands at just 37 points, and companies producing solely for the Hungarian market, particularly those with fewer than 20 employees, continue to struggle for survival. Two‑thirds of firms expect no improvement in the next six months, and more than half plan no major investments, citing unclear economic regulations and an unpredictable policy environ ment.
The number of manufacturing enterprises has also shrunk sharply, from 40,000 in January 2022 to 36,000 by December 2025, meaning only the more resilient firms remain.
Although the general perception of the Hungarian economy has inched up to 30 points, it still sits deep in negative territory, and the sector’s recovery depends on whether external demand can eventually lift domestic supply chains.
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