Rising energy prices will "significantly restrain" the performance of European economies, parallel with higher inflation, and the economic impact of the fourth wave of the pandemic will also be felt, Minister Varga said.Continue reading
Industrial output in Hungary fell by an annual 2.3 percent in September as the global chip shortage impacted the local automotive industry, the Central Statistical Office (KSH) said on Friday.
Output of vehicle manufacturing “fell significantly” in September as the global semiconductor shortage caused factory shutdowns, KSH said in the first reading of data.
Output of the computer, electronics and optical equipment segment also declined, while output of the food, drinks and tobacco segment rose, it added.
Adjusted for the number of work days, output fell by 1.7 percent.
In a month-on-month comparison, output edged down a seasonally and workday-adjusted 0.3 percent.
ING Bank chief analyst Péter Virovácz said supply chain interruptions, parts shortages and the labour squeeze present “serious downside risks” in the fourth quarter. Weaker exports paired with stronger import demand driven by consumption and investments could weigh on GDP growth, too, he added.
Erste Bank analyst János Nagy said the global supply crunch could impact industrial output in October, too, although he noted that new capacity in battery manufacturing and the chemicals industry could help offset the poor performance of the automotive sector.
Featured photo illustration by Csaba Bús/MTI