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Car makers continue to drive industrial output growth

Output of Hungaryʼs automotive sector, the engine of industrial growth accounting for about 30% of manufacturing production, rose 12.8% year-on-year in March, the highest rate in two-and-a-half years, and well above the 8.0% increase in overall industrial output.

Car workers at the Audi factory in Győr

In March 2019, the volume of industrial output grew by 8.0% year-on-year, according to a second estimate of monthly data from the Central Statistical Office (KSH). The working day-adjusted index was equal to the non-adjusted one, and the data in the second estimate did not change from that of the first estimate on May 8.

In a month-on-month comparison, industrial output – according to the seasonally and working day-adjusted index – was above the previous month’s level by 1.0%.

Within industry, production grew by 7.8% in manufacturing year-on-year in March. The output of the energy industry (electricity, gas, steam and air-conditioning supply) declined by 5.7%, mainly as a result of milder weather compared with the previous year.

The manufacture of transport equipment - representing 30% of total manufacturing output - grew by 12.8% year-on-year. The manufacture of motor vehicles rose by 18%, while the manufacture of parts and accessories for motor vehicles rose by 6.9%.

The manufacture of computer, electronic and optical products (accounting for 12% of manufacturing) increased by 7.8%. The manufacture of food products, beverages and tobacco products (providing almost 10% of manufacturing) grew by 4.7% compared to the same month of the previous year.

The volume of industrial exports grew by 7.7% year-on-year in March. Within export sales in manufacturing, exports of transport equipment (representing 37% of the total) rose by 11.3%, while in the manufacture of computer, electronic and optical products (accounting for 16% weight), the volume rose by 11.1%.

Industrial domestic sales increased by 2.4%, within which domestic sales in manufacturing were 8.5% higher compared to the same month of the previous year.

Total new orders volume in the observed subsections of manufacturing rose by 15.2% compared to March 2018 data. New domestic orders volume increased by 5.1%, while new export orders went up by 17%. The total stock of orders at the end of March was 10.6% above the level of the previous year.

In January–March 2019, compared to the first quarter of 2018, industrial production rose by 6.2%. The volume of export sales - representing 63% of all sales - went up by 7.4%, while that of domestic sales - accounting for 37% of all sales - grew by 5.1%.

A first estimate of industrial output data for April 2019 will be published on June 6, with a second, more detailed estimate to follow on June 13.