Actual (Sep): 3.0 % y/y
Consensus: 0.75 % y/y
Previous (Aug): 4.5 % y/y
Hungary´s industry posted very good figures. Month on month, the production increased by 3.9 pct, a pace unseen since January. The sector, thus, pared the previous decrease. Also the year-on-year growth was good and beat expectations significantly. Given the weakening German industry it is questionable, whether the Hungary´s industrial output was driven upward by foreign demand. It rather seems that local demand was behind, but the details are not known yet. Although the September figures are surprisingly high, we do not see a big chance for industrial production to repeat the results in the future. With local demand being depressed and the Eurozone slowing down rapidly, acceleration of industry is unlikely. The Hungarian industrial output should, therefore, return to its previous trend, which is stagnation.