Output of the automotive industry, Hungary's biggest manufacturing sector, rose 10.5% year-on-year in May, level with the pace of growth in the previous month, a detailed release of data by the Central Statistics Office (KSH) on July 13 shows.

The segment accounted for 26% of manufacturing output during the month. The detailed data show output of the electrical equipment segment, which made up 12% of manufacturing output, climbed 13.4%. Output of the computer, electronics and optical equipment segment, accounting for 9% of manufacturing, fell 6.9%, albeit at a slower pace than in April.

KSH confirmed that headline industrial output fell 6.9% in May (chart), following an 8.3% decline in the previous month. Output dropped 4.6% when adjusted for the number of workdays. In a month-on-month comparison, output rose a seasonally- and workday-adjusted 1.6%.

 

Output of the food, drinks and tobacco segment, which made up 12% of manufacturing sector output, slipped 16.7%.

Hungary’s export-oriented automotive industry has the weak performance of companies producing for the domestic market, in line with the trends seen in previous months.

Smaller companies have been hit by the energy crisis and cut back production. The dichotomy between companies producing for the export market and those operating mainly in for the local market confirms the picture of steadily shrinking domestic demand in the economy, ING Bank said.

Industrial sales fell 7.8% in May, as export sales edged up 0.3% and domestic sales plunged 18.4%. In absolute terms, industrial sales reached HUF5.6 trillion.

Exports sales accounted for 61.7% of the total.

Domestic industrial orders were up by 6.2% y/y in May but overshadowed by the fall of new orders by 9.8% y/y.

Hungary's industrial output dropped 4.8% y/y in the first five months.