Hungary: Second estimate confirms weaker growth in industrial production in September
According to revised data released by the Hungarian Central Statistical Office (KSH) on 13 November, industrial output rose a working-day adjusted 2.2% year-on-year in September. The print confirmed the preliminary estimate and came in below the 4.6% increase in August. September’s deceleration was due to notably softer growth in the manufacturing sector, which makes up over 90% of the index, which more than offset a rebound in energy production and a sharp acceleration in the growth of the mining and quarrying sector—which has significantly less influence on industrial output than the manufacturing sector.
In terms of sub-sectors, a slight contraction was recorded in the manufacture of transport equipment, which represents more than one-quarter of manufacturing output, as well as in the manufacture of computer, electronic and optical products. On the other hand, the manufacture of food products, beverages and tobacco products; and of rubber and plastics products, and other non-metallic mineral products recorded healthy expansions. Meanwhile, in terms of sources of demand, domestic sales rose again at a solid pace, while exports sales continued to decline, likely negatively affected by weaker demand from Hungary’s main trading partner, Germany.
In month-on-month, seasonally- and working-day adjusted terms, industrial production contracted 2.1%, contrasting August’s 3.9% jump.
Consequently, annual average growth in industrial production fell from August’s 4.7% to 4.3% in September.