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Hungaryʼs industrial output growth accelerates

Hungaryʼs industrial output rose 4.2% year-on-year in June, the Central Statistical Office (KSH) said in a first reading of data yesterday.

Adjusted for the number of workdays, output climbed 3.1%. In the previous month, output rose 0.4% according to unadjusted figures, and rose 3.1% according to adjusted data.

In a month-on-month comparison, output in June was down a seasonally- and work day-adjusted 1.2% following a 1.8% rise in May. For the period January-June, output rose 3.5% y.o.y. KSH will publish a second reading of the data on August 13.

Analyst András Horváth of Takarékbank told national news agency MTI that output growth could accelerate in the coming months as new production capacities come online and because of low base effects. It is a favourable trend that domestic sales are playing an ever bigger role because of strong demand. Unadjusted output growth could reach 5.3% for the year, following 4.6% growth in 2017.

K&H Bank chief analyst Dávid Németh said industrial output is proving to be rather volatile this year. Some extraordinarily good months were followed by ones where output fell. Overall, he said he believes annual output growth could be around 4-5%.