Hungary's Industrial Production Continues to Decline in May; Manufacturing Subsectors Contribute to the Negative Trend

Hungary's industry continued to underperform in May, as the volume of industrial production fell by 4.6% YoY, after adjusting for calendar effects. The yearly based drop is the result of a 1.6% month-on-month increase in the volume of industrial production, after adjusting for seasonal and calendar effects. However, the rebound in May was not significant enough to break the sector's negative trend, as output is still below the level recorded at the beginning of the year.

 

Performance of Hungarian industry

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Even though the Statistical Office will release the detailed data next week (13 July), the preliminary statement highlights that the majority of the manufacturing subsectors contributed to the production decline. As always, the exceptions are electrical equipment and transport equipment manufacturing (e.g. electric vehicle batteries and cars). Both sectors expanded on a yearly basis in May. In contrast, the other two most important sectors: computer electronics and food manufacturing recorded declines in production, according to the Statistical Office’s commentary.