Hungary’s industrial output fell for the fourth straight month in April and growth of the flagship automotive sector slowed to 10.5% in April from 23.5% in the previous month,  the Central Statistics Office said in a detailed reading on June 14.

KSH confirmed that headline industrial output fell 8.3% y/y (chart) following a 4.1% decline in March and was down a calendar-adjusted 5.8%.

In a month-on-month comparison, output dropped a seasonally- and workday-adjusted 2.5%.

In the first four months, output declined 4.3% y/y.

The contraction in industrial output, a key segment of Hungary’s economy, was the steepest in April since the pandemic and it was a drag on economic growth in Q1, when output shrank for the third straight quarter.

There is consensus among analysts that the slump will continue in the second quarter, and it is unlikely that the industry will make a positive contribution to economic growth in the current quarter.

 

There are contrasting dynamics in local industry. Companies dominantly selling for the Hungarian market are underperforming export oriented businesses, mostly large multinationals companies forming the backbone of the economy.

Export sales, accounting for 59% of total output, slipped 2.5% and domestic sales dropped 20.1% y/y in April.

By sectors, the output of the electrical equipment segment, which made up 12% of manufacturing output, climbed 17.8% y/y. Output of the computer, electronics and optical equipment segment, accounting for 9% of manufacturing, fell 12.5%. Output of the food, drinks and tobacco segment, which made up 12% of manufacturing sector output, plunged 20.1%.

The volume of new orders was 9.8% lower compared to the base period at the end of April as new domestic orders dropped by 16.9%, new export orders fell by 8.5%. The total stock of orders at the end of April was above the previous year’s level by 6.2%.