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Rising domestic sales bring positive surprise

Fresh data showing rising domestic sales of the industrial sector were a positive surprise, analysts told MTI.

Domestic sales of the industrial sector rose 4.1% in May from the same month a year earlier, increasing for the first time since September 2008, a second reading of industrial output published by the Central Statistical Office (KSH) shows.

ING's Dávid Németh said the data show domestic consumption is “starting to come into its own”. But he questioned whether the positive figures were the start of a trend, especially considering low business confidence indicators for the next six months.

Gergely Suppan of Takarékbank said the jump in new orders - up 40.6% in May from the same month a year earlier as new export orders climbed 43.7% and new domestic orders rose 22.8% - was reason for optimism. But he warned that uncertainty on capital markets and expected austerity measures would weigh. He put industrial input growth around 10% in June and July.

Industrial output rose 13.7% in May from the same month a year earlier. (MTI – Econews)