Actual: -0.5% y/y
Consensus: 2.75% y/y
Previous: 2.1% y/y
The Hungarian industrial production increased by 2.1 pct month-on-month in January. It is not a strong recovery after the previous 7.3 pct drop in production. In year-on-year comparison the output is slightly lower, although boosted by a higher number of working days. The statistical office says that behind the weak January figures there was a decline in vehicle manufacturing and in sectors of electronics and telecommunication equipment. It is likely that both domestic and foreign demand is a drag for the industry.
So far, the external demand was in a somewhat better shape but in the months to come its support will likely be weak, as the unexpected January drop in German industrial orders has indicated. The Hungarian PMI has increased slightly above 50 points, but still suggests that the recovery will remain slow.