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Automotive sector continues to drive industrial output in May

Year-on-year output of Hungaryʼs automotive sector, the main engine of industrial growth, rose 17.2% in May, the fastest rate since 2015, shows a second reading of data issued Friday by the Central Statistical Office (KSH).

Growth in the sector was nearly double the 8.7% increase in overall industrial output in May. The automotive sector accounts for about 30% of manufacturing output, noted state news wire MTI.

Output of the computer, electronics and optical equipment sector, which accounts for around 11% of manufacturing output, climbed 6.6%, after contracting in the previous month.

Output of food, drink and tobacco products increased 5.4%. The sector generates around 10% of manufacturing output.

Headline industrial output rose 6.1% year-on-year in May when adjusted for the number of working days in the period.

In a month-on-month comparison, industrial output rose a seasonally and working day-adjusted 1.4%.

Export volume of the industrial sector increased 8.8% year-on-year in May as exports of the automotive sector - which account for 37% of the total - climbed 17.0%, while exports of the computer, electronics and optical equipment sector rose 5.1%.

Domestic sales of the industrial sector were up 9.2% in May, within which domestic sales in manufacturing were 7.5% higher compared to the same month of the previous year.

The order stock in parts of the manufacturing sector which the KSH tracks was up 7.1% at the end of May from 12 months earlier. The new order volume rose 2.8%, as new domestic orders increased 3.9% and new export orders were up 2.6%.

For the period January-May 2019, industrial output increased 6.7% compared to the first five months of 2018.

A first estimate of industrial production data for June - and for the first half of 2019 - will be published on August 7, with a second, more detailed estimate to follow on August 13.