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Automotive sector holds industrial output back in April

Industrial output in Hungary rose 6.3% year-on-year in April according to unadjusted data, and by 6.0% according to working day-adjusted figures, the Central Statistical Office (KSH) said in a first reading of data on Thursday.

In a month-on-month comparison, industrial output was down a seasonally and working day-adjusted 1.1% in April. The pace of growth slowed in vehicle manufacturing, the main driver of industry, while output also contracted in the computer, electronics and optical products segment, the KSH said.

In the food, drink and tobacco products segment, output growth exceeded the industrial average, the agency noted.

In January-April 2019, industrial output was up 6.2% from the first four months of 2018.

Analyst Péter Virovácz of ING Bank told state news wire MTI that the March and April industrial output data were influenced by the Easter effect, but that the sectorʼs output growth is sustainable at the level seen in the first four months of the year.

Dávid Németh of K&H Bank noted that the April output figure came from a high base, reflecting strong performance. The data continue to show that growth is driven by the installation of new capacities, which offset the decline in external demand, he added, forecasting industrial output growth of around 5% in 2019, or slightly lower if there is a marked slowdown on international markets.

Zsombor Varga of Erste Bank predicted industrial output growth between 5% and 5.5% for the full year.

A second, more detailed estimate of industrial production data for April will be published on June 13.