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Decline in August industrial output not so bad, say analysts

  Analysts polled by MTI on Tuesday said data showing Hungary’s industrial output slipped an adjusted 1.2% year-on-year in August were not so bad in light of the slowdown across Europe.


The August decline in twelve-month workday-adjusted industrial output was well under the 1.8% drop in July, figures published by the Central Statistics Office (KSH) show.

The fall in unadjusted industrial output is not the surprise, but the size of the fall, said fund manager Budapest Alapkezelő’s Péter Duronelly. He said the adjusted 1.2% drop was “not too bad” and noted that many countries in Europe have experienced a slowdown in growth or even a contraction of industrial output since May. Duronelly put Hungary’s full-year industrial output growth in 2008 between naught and 2%. He projected the whole economy would expand 1.5% in 2008 and just 0.5% -- or even naught -- In 2009.

Erste Bank’s Orsolya Nyeste said the 1.2% twelve-month workday-adjusted decline in industrial output registered in August could not be called bad, and the 0.8% month-on-month increase was positive. She blamed slowing exports, caused by the slowdown in the euro zone, for the weak figures. (MTI-Econews)