Hungarian industrial output nearly stagnated in July compared with the same period last year. The result is not very promising, although m-o-m change is positive (+0.8 %) and w.d.a. year-on-year figure is better (2.7 %) than the non-adjusted one. The KSH have confirmed a downturn in key sectors such as telecommunications equipment and electronic consumer goods, while they see some favorable trends in auto industry.
Both domestic and foreign demand is worsening. The latter is getting under pressure industrial production in all CE countries. German industrial output was surprisingly good in July, but industrial orders brought a negative indication for next months. Similarly, PMIs in Germany and the Eurozone suggest stagnation or a slight decrease. Hungarian industry is, therefore, expected to only show low one-digit growth rates in the remainder of the year.
Actual (Jul): 0.3 % y/y
Consensus: 1.3 % y/y
Previous (Jun): -1.4 % y/y