Hungary's industrial output increased by 12.3% y/y in July 2014, speeding from a 11.3% growth in the previous month, the statistics office said on September 12 confirming the preliminary figures published a week earlier. The growth was driven by the expanding transport equipment and food sectors.

In workday-adjusted terms, production also grew by 12.3% y/y in July and adjusted for seasonal effects it went up by 1.6% m/m.

The manufacturing sector expanded by an annual 13% in July, supported mainly by a 31.9% rise in vehicle production, a 9.9% hike in computer and electronics production and a 6.2% rise in food production. By contrast, the mining and quarrying sector shank by 11.2% y/y in July, while the energy sector registered a 1.3% y/y production rise.

Industrial export sales increased by 15.3% y/y in July, mainly on the back of a 32% y/y growth in transport equipment exports, which represented more than a third of the manufacturing sales abroad. In addition, the computer, electronic and optical products sector, which accounted for a seventh of the manufacturing exports, grew by 11.4% y/y.

Industrial domestic sales were 4.8% higher on the year in July, pushed up by a 7.7% y/y rise in manufacturing sales.

New manufacturing orders grew by 17.5% y/y in July, reflecting an 18.3% y/y rise in the volume of new export orders and a 12.5% y/y increase in domestic orders. The total stock of orders was up 19.2% y/y at end-July

In aggregate terms, the industrial output increased by 9.8% y/y in the first seven months of 2014.

Hungary's industrial output grew by 1.4% y/y 2013, recovering from a 1.8% y/y drop in 2012. The improvement was exclusively due to a 4.9% y/y rise in export sales, which more than offset a 1.8% y/y drop in sales on the domestic market.