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Analysts say Q4 investment-volume data disappointing

Central Statistics Office data published on Tuesday morning showing that investment volume fell 7.8% yr/yr in Hungary in the fourth quarter of 2010 and dropped 5.5% for the entire year was worse-than-expected, analysts told MTI.

Gergely Suppán of Takarékbank commented that the investment-volume data published on Tuesday morning conformed to expectations only in the manufacturing sector. The data were boosted by investments in the manufacturing sector.

Suppan noted that Hungary's seasonally-adjusted Purchasing Managers Index (PMI) nevertheless rose to 57.0 in February from 54.7 in January as data released on Tuesday morning showed.

Zsolt Kondrat of MKB Bank remarked that the investment-volume data was positive only in the export and manufacturing sectors. Kondrat predicted that investment volume would remain low throughout 2011 as a result of a large degree of excess capacity, the uncertain economic outlook and the government's extraordinary taxes.