Hungarian industrial production slipped again in April as it dropped 3% y/y, extending the sector's erratic performance since the start of 2016, according to preliminary data reported by statistics office KSH on June 7.
The result is a stark contrast to the 13.4% rise in March. While the shortened month exaggerated the drop off in activity, even working day-adjusted data could only muster a 2.5% increase in output. Illustrating the swing also was a seasonally-adjusted fall of 0.8% m/m.
The decline was attributed to a high base figure. There is no reason to draw far-reaching conclusions from one-month of decline, KSH official Miklos Schindele claimed. However, the result fits with declines in activity across the Visegrad region at the start of the second quarter, as well as an extremely erratic track record for Hungarian industry last year, driven by carmakers and a deep lull in investment.
As seen in neighbouring countries, a drop in Eurozone car imports set back the vital auto sector in Hungary in April, Takarekbank pointed out in a note. However, the analysts remain bullish.
The record PMI figure for May and the acceleration of manufacturing activities in Europe foreshadow a rebound in industrial output in May, they suggest. Thus far, industrial output has continued to show volatility through 2017 also.