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PMI rises but still showing contraction

Hungary's seasonally-adjusted Purchasing Managers Index (PMI) grew 0.8 points to 48.5 in December from November, still showing contraction of the performance of manufacturing in a monthly comparison, the Hungarian Association of Logistics, Purchasing and Inventory Management (Halpim), which publishes the index, said on Monday.

An index above 50 indicates a pick-up in manufacturing activity, while a figure below 50 shows contraction.

The improvement in September proved temporary but the drops of the last three months slowed compared to the previous months, Halpim noted, adding that a contraction of the manufacturing sector for 16 months in a row was unprecedented in the 15-year history of the Hungarian index. The previous longest period of drops lasted five months between August and December 1998.

The seasonally-adjusted index fell well under 50 in October 2008 as Hungary suffered the first effects of the global financial and economic crisis. It bottomed out around 38 in January last year before starting to improve, rising as high as 49.4 in July, before dipping to 46.0 in August, then rising to 49.0 in September, and lower again since then. (MTI-ECONEWS)