Hungary’s industrial output grew by an annual 11% in June, based on preliminary data, after a revised 1.6% rise in May The June index adjusted for the number of workdays rose by 6%, the Central Statistical Office (KSH) said. In a month-on-month comparison, industrial output rose by 1.1% according to seasonally and working day adjusted data. In the first six months of 2015, industrial output was up 7.3% from a year earlier.
KSH statistician Miklós Schindele said the trend of the previous months continued, with industrial output growth still largely driven by the automotive sector, though the other machinery industry segments and chemical industry also produced growth. András Balatoni of ING Bank said annual industrial output growth could reach 7% in 2015 as the outlook remains positive due to rising order stock and high confidence indices in the sector. Output soared in June after weaker data from the previous two months, but it would be mistaken to assume this amounts to a growth trend, he said. Vivien Barczel of Erste Bank forecast annual industrial output growth at 5-6%. Gergely Suppan of Takarékbank said the sector’s annual output growth could exceed 7.5% this year. Dávid Németh of K&H Bank forecast annual industrial output growth of 6%.
Commenting on the industrial output data released today, the economy ministry’s state secretary attributed the growth primarily to an increase in vehicle customer orders abroad. Hungary’s industry is immensely export oriented, turning out products that are competitive, Béla Glattfelder, who is in charge of economy policy regulation, told public news channel M1. He noted an increasing demand for vehicles manufactured in Hungary in US markets. He said that a strong performance in the chemical and the mechanical engineering sectors also contributed to Hungary’s industrial growth in June. In the whole sector, more than 20,000 new jobs have been created since last June, he said. Glattfelder said that an achievable though ambitious goal of the government’s is to raise the proportion of industry to the country’s economic output to 30% by 2020 from the current 22-23%. This would make Hungary one of the European Union’s most industrialised member states, he added.
via ksh.hu, hungarymatters.hu and MTI photo: origo.hu