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Bigger than expected rise in industrial output is positive sign - analysts

A bigger than expected increase in Hungary’s industrial output in September is reason for optimism, analysts told MTI on Tuesday.

Hungary’s industrial output rose a workday-adjusted 3.0% year-on-year in September after edging down 0.4% in August, the Central Statistics Office (KSH) said in a first reading on Tuesday.

Gergely Suppan of Takarékbank said the increase was well over expectations. The data suggest Hungary’s GDP may have climbed in Q3 quarter-on-quarter, he added.

Suppan put full-year industrial output growth at 5.5-6% in 2011 and 6-6.5% in 2012. Growth will be supported by the startup of new capacity at the Hungarian plants of German carmakers Daimler and Opel, he added.

Raiffeisen Bank’s Zoltán Török said the data shows the sector clawing back ground, a trend that could last until the end of the year. He put full-year industrial output growth at 5.5% but said the sector would probably stagnate in 2012.