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January industrial output growth beats estimates

Industrial output in Hungary grew faster than expected in January compared to December, analysts told MTI on Tuesday.

Hungary's year-on-year industrial output growth accelerated to a workday-adjusted 10.9% in January from 5.9% in December, the Central Statistical Office (KSH) said in the morning. In a month-on-month comparison output climbed a seasonally- and workday-adjusted 15.5% in January, following a 13.3% decline in December.

Erste Bank's Zoltán Árokszállási said the month-on-month increase was well over his estimate of 10.5%. The sharp fall in output in December was probably due to a Saturday that was an official workday but which many people used as a holiday, he added.

Stock of industrial orders and purchasing manager indices in both Hungary and the country's export markets in Europe suggest industrial output will continue to grow this year, albeit at a slower pass, Árokszállási said.

Zsolt Kondrat of MKB Bank also said the month-on-month increase well exceeded his estimate of 9.5% in January. Industrial output is likely to return to the growth path started in 2010 after a hiccup in December caused by one-off effects, he added.

He put full-year growth in 2011 at 6%, down from about 10c in 2010 because of a high base and fiscal austerity measures in Europe.