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Hungary's PMI returns to expansion at adjusted 53.5 in July

Hungary's seasonally adjusted Purchasing Managers Index (PMI) rose to 53.5 in July from 49.6 in June and 49.8 in May, reflecting expansion in domestic manufacturing activity after contraction in the previous two months, the Hungarian Association of Logistics, Purchasing and Inventory Management (Halpim), which published the monthly index, announced.

Halpim noted that the contractions in May and June were minor and may even disappear as a result of future seasonal adjustment .

The adjusted PMI exceeded 50, indicating expansion in manufacturing activity, in the first four months of 2010. The adjusted index peaked at 56.0 in February and dropped to 51.8 in April before dipping below 50.

Hungary's PMI reflected continuous contraction between August 2008 and December 2009.

Unadjusted PMI was 54.0 in July, up from 51.5 in June.

Four of the PMI's five sub-indices were above 50, and all reflected improvements in July.

The only sub-index under 50 was the delivery-time index which dropped 1.7 to 40.8, reflecting that the lengthening of delivery times gathered pace again after slowing slightly in June.

The value of the purchased-stock index rose 6.2 to 54.3 after staying below 50 for several months. Halpim noted that the rise is unusual for the season.

The production-volume index jumped 7.3 to 57.8, suggesting that output growth picked up after a slowdown.

The new-order index rose further, by 4.9 to 56.5. The increase was bigger than in June and the rise has continued for the seventh month in a row.

The rise employment sub-index slowed to 0.1 after a 0.4 increase in June, and the index stood at 52.9 in July, reflected a continued moderate rise of employment in the manufacturing sector now for the eighth month. (MTI – Econews)