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Hungaryʼs industrial output up 7.8% in April

In April 2018, the volume of industrial output increased by 7.8% year-on-year, according to a first estimate by the Central Statistical Office (KSH). Based on working day-adjusted data, production rose by 2.9%.

The significant difference between the two figures is because there were two more working days in April 2018 than in April 2017, the KSH noted. (In March, output fell 2.4% because there were two more working days in the base period.)

In the first four months of this year, production was 3.8% higher compared to the same period of the previous year.

Industrial output in April – according to seasonally and working day-adjusted indices – was 0.2% above the level of the previous month.

Output in the manufacturing sector was up in all segments, a senior KSH official was cited as saying by state news agency MTI. Of the three biggest segments, output in the automotive and food industries was above the headline figure, while output in the electronics industry was under it.

ING Bankʼs chief analyst Péter Virovácz told MTI that industrial output, which has been more or less stable since January, could pick up somewhat in the second half of the year on the back of new capacity, adding that the Purchasing Managersʼ Index (PMI) and other measures of confidence also indicate an acceleration.

TakarékBank analyst Gergely Suppan said the April output figure was a little under expectations, but added that the outlook is favorable. He put full-year growth at 6.5%, up from 4.8% last year.

A second, more detailed estimate of industrial output figures for April 2018 will be published by the KSH on June 13.