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UPDATE - Hungary PMI drops to 48.2 in October

Hungary's seasonally adjusted Purchasing Managers Index (PMI) fell to 48.2 in October from 50.8 in September, the Hungarian Association of Logistics, Purchasing and Inventory (HALPIM) announced on Wednesday.

The index dropped for the second time in the past three months, and was low both compared to the previous months and to Octobers in previous years, the report noted. PMI indicated steady expansion in the manufacturing sector between July 2010 and April this year, and a slowdown since May.

A PMI of over 50 indicates an expansion of the manufacturing sector compared to the preceding month, while a PMI of under 50 indicates contraction of the sector.

Of the PMI five sub-indices, two reflected an increase and three reflected a contraction in September.

The PMI's employment sub-index dropped below 50 after increases in the previous 12 months. Its value was the lowest since September 2009.

The production sub-index was above 50 for the 22nd-consecutive month in October, although it declined further. The increase was the second longest since a steady rise between July 2005 and June 2007.

The new order sub-index indicated a drop again some rise in September. The index dropped below 50 after a 19-month rise in August. The index's increase was the longest except for a 36-month rise between July 2005 and June 2008.

The delivery time sub-index remained below 50 in September, indicating a further mild lengthening of delivery times, for a record 23rd consecutive month.

The purchased stocks sub-index rose after a drop in September. The index fluctuated in the past few months, rising in April-June, falling in July and rising in August.

The HALPIM PMI index and sub-indices are based on monthly surveys of 100 supply managers at manufacturing companies in Hungary.