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Electronics sector helps industrial output growth in October

In October 2018, the volume of industrial output in Hungary grew by 5.9% year-on-year. Based on working day-adjusted data, production rose by 3.3%, according to a first estimate of monthly data from the Central Statistical Office (KSH).

In January-October 2018, production was 3.4% higher compared to the corresponding ten-month period of 2017.

Industrial output in October – according to seasonally and working-day-adjusted indices – was 2.0% above the level of the previous month.

The expansion of the electronics industry was particularly significant in October, economic news portal vg.hu cited a senior KSH official as saying.

Output growth in automotive manufacturing, meanwhile, as one of the key drivers of Hungarian industry, remained behind the overall average growth, although it did turn positive again after three months of decline.

Output growth in the food industry remained at a similar level to the preceding month, vg.hu added, noting that raw data were impacted by the fact that there was one more working day this October than in the same month of 2017.

Analysts interviewed by state news wire MTI said the October data well exceeded expectations after the 0.6% decline in output in September.

Péter Virovácz of ING Bank predicted industrial output growth between 3.5% and 4% for the full year, compared to 4.6% in 2017.

Gergely Suppan of TakarékBank said industrial output growth is supported by the installation of new production capacities, as well as the positive industrial sentiment and confidence indices. He forecast industrial output growth of 3.6% in 2018.

A second, more detailed estimate of industrial production in October will be published on December 12.