Hungary’s industrial production growth quickens to 7.6% in 2014

By bne IntelliNews February 6, 2015

Hungary’s industrial production saw robust growth of 7.6% in 2014, quickening from the increase of just 1.1% in 2013, statistics office KSH reported on February 6 as it released a preliminary estimate.

According to unadjusted figures, the annual increase of industrial output sped up to 7.1% in December from November's 5.6%, the office said in a statement. Working-day adjusted figures, however, indicate a slowdown to 4.6% in the last month of 2014 from 5.6% a month earlier, as the office slightly downgraded its previous estimate for a 5.8% increase in November.

According to analysts at Capital Economics, the strong industrial production in December suggests Hungary's fourth-quarter GDP growth is likely to have increased by 2.5-3%. The statistics office is expected to release a flash GDP estimate on February 13.

If the expectations are confirmed, this would mean economic expansion continued to weaken at the end of last year. After speeding off early in the year, and peaking with a 3.9% expansion in the second quarter, growth slowed to 3.2% in Q3.

Capital Economics also notes that although industrial production growth slowed throughout 2014, it remains at pretty healthy levels, especially given the weak growth in key Eurozone export markets.

In monthly terms, Hungary's industrial output shrank by 1.7% in December after rising 3.2% in November when car production was the key growth driver. The statistics office will release detailed data for December on February 12.

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