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Manufacturing sector outlook improves

Manufacturing companies still say their situation at present is bad, but their outlook is improving, the latest gauge of sentiment in the sector by think tank Kopint-Tárki shows.

The short-term outlook for production, sales and orders all improved in April, although order stock was still low. Companies expect growing demand on export markets and increased use of capacity.

The optimism is fueled by external markets as demand on the domestic market is still weak, Kopint-Tárki said.

Almost three-fourths of companies said production was down because of the lack of domestic demand. About half said weak demand on export markets had impacted production. On the whole their sales prospects have improved slightly from January.

Companies on average said they were using about 72%of capacity at present, and they expect the ratio to rise in the twelve months ahead.

Layoffs in the sector have slowed and could end in 5-6 months Kopint-Tárki said based on the results of the survey.

Companies' assessment of the economy as a whole at present was little changed from the previous survey in January, but the outlook for the economy improved slightly. Companies projection regarding the macro-economic outlook has been improving steadily since April 2009. (MTI – Econews)