Following the more than 6 percent growth registered in January, Hungarian industrial output continued to increase in February by gaining 8.1 percent year-on-year. The vehicle manufacturing sector was the most significant growth factor, but the fact that expansion was recorded in ten out of the altogether thirteen sub sectors shows that growth has been based on a sound footing.

According to data compiled by the Hungarian Central Statistical Office (KSH), among the industrial sectors of the national economy the vehicle manufacturing division expanded by more than 42 percent in comparison to the corresponding period of the previous year. Output of the mining and quarrying sector also recorded remarkable growth of 13 percent. The manufacturing sector continued to excel with an output increase of 7.1 percent in February. As far as the initial two months of 2014 are concerned, output at the manufacturing sector and the vehicle manufacturing sector increased by 6.7 percent and 18.1 percent, respectively.

In February 2014, industrial output was higher in every region. Output increase was the largest in Western Transdanubia and Southern Great Plain with more than 19 percent growth each. With regard to a county breakdown, industrial output was outstanding, 26 percent, in Győr-Moson-Sopron. In this county, industrial output was up by 31 percent in the initial two months of the year compared to January-February 2013. In Bács-Kiskun County, however, output growth was even more significant, 30 percent, and in the initial two months of 2014 – thanks to the car industry -- the sector gained more than 20 percent.

Hungary’s industrial exports also continued to improve in February, adding more than 11 percent. The main factor fuelling export growth was the vehicle manufacturing sector, which constitutes more than 28 percent of the total manufacturing industry.

The fact that the stock of new orders at manufacturing industry divisions observed by KSH was up by 17.3 percent in comparison to February 2013 is indicating that industrial rebound will persist. Recent data are confirming that the reindustrialization policy of the past years has laid the foundation for further export and industrial output growth.

(Ministry for National Economy)