The multi-month upward trend of Hungary’s industrial production continued in September this year: in comparison to the corresponding period of 2012, industrial output increased by 5.5 percent. In light of data adjusted for seasonal and calendar effects, the sector grew by 1.8 percent compared to August. As a result of the Government’s reindustrialization policy, Hungary is also among the top performers within the European Union.

Data adjusted for workday effects show growth of 3.1 percent. Industrial output was mainly driven by the sales growth of the car industry and related supplier divisions. In the ninth month of the year, manufacturing industry achieved excellent performance: the sector expanded by 6.3 percent as eight out of the altogether thirteen sub sectors posted output growth. Output regarding the vehicle industry, which constitute some one-fourth of total manufacturing production, was up outstandingly, by more than 27 percent. Growth was above-average with regard to the manufacturing of basic metals and fabricated metal products (12 percent) and of textiles, wearing apparel, leather and related products (9.5 percent) which were primarily boosted by the favourable effect of exports.

Industrial exports in the initial nine months of the year and in September increased by 3.4 percent and 11.8 percent, respectively, in comparison to the corresponding period of 2012. Exports of the vehicle manufacturing sector, which constitute an important share of total manufacturing industry exports with some one-third of total, jumped in September by almost 28 percent. Along with exports, domestic sales of industrial products were also higher by 5 percent compared to the same period of 2012. In September, the domestic sales of the manufacturing industry were up by 3.9 percent year-on-year.

According to Eurostat data, Hungary is among the best on the industrial performance ranking of the EU28 member states based on seasonally adjusted monthly and workday-adjusted annual data. Out of the twenty-eight EU member states, only Ireland, Romania, Slovakia and Poland scored better in the European Union, while average annual industrial output growth was 1.2 percent within the EU28 and 1.1 percent in the eurozone. Month-on-month, Hungary’s industrial expansion figure was the third best, well above the negative growth of 0.2 percent within the entire EU and 0.5 percent within the eurozone.

The steady increase of industrial output conforms to the approach of the Government as it aims to maintain the robust performance of the Hungarian economy through bolstering the productive sectors and pursuing an active industrial policy.

(Ministry for National Economy)