Auto sector finally drives Hungarian industry out of early year slump

Auto sector finally drives Hungarian industry out of early year slump
By bne IntelliNews June 14, 2016

Following five straight months of m/m decline in a row, Hungary's industrial production returned to growth in April, statistics office KSH reported on June 14. The release confirmed a preliminary estimate from earlier this month.

Unadjusted industrial production increased 5.4% m/m and 5.3% y/y in the fourth month of the year. While the extended turn of the year slowdown in industrial production – mainly due to a drop in the auto sector – contributed to feeble GDP growth in Q1, a recovery in the industrial sector should help improve the economic outlook for the second quarter.

The two-year average for Hungary's industrial output growth is around 7%, and expansion peaked at 12.7% in October. However, industrial production increased just 0.3% y/y in Q1 2016.

Adjusting annual output in April made no difference to the figure, after producing a 2.4% y/y decline in March.

In its detailed second estimate, KSH showed that performance improved in all segments of industry in April, except for the food sector, which recorded a 3.5% y/y decline. However, the stabilisation of growth mainly reflects a recovery in the auto segment.

The manufacture of parts and accessories for motor vehicles grew at a rate of 12.2% y/y, although the manufacture of motor vehicles increased no more than 2.7%. That, however, following a remarkable 14.4% drop in March. Output decreased to at least some degree in the first quarter due to technical switchovers at Audi and Suzuki.

Carmaking drove impressive growth in industrial output last year. However, it is becoming clearer that the potential of carmaking to unbalance the entire industrial sector is an issue for Budapest. In March, it was mainly the lull in automaking that drove industry data into the ground.

Data

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss