Industrial output edges up in October

The output of Hungary's industrial sector was up by an annual 0.6 percent in October, slowing from a 2.2 percent increase in the previous month, the Central Statistical Office (KSH) said.

Adjusted for the number of workdays, headline output increased by 2.7 percent.

Output of the automotive as well as the computer, electronics and optical equipment segments rose, but output of most other manufacturing segments, including food, drink and tobacco products, fell, KSH said.

In a monthly comparison, output was up 2.8 percent when adjusted for workday and seasonal changes.

Output dropped by 8.2 percent in January-October, KSH said.

Commenting on the data, Laszlo Gyorgy, a state secretary of the innovation and technology ministry, said the government’s economic protection measures have successfully compensated the fallout of the coronavirus epidemic. The performance of the Hungarian industry has improved in every autumn month, he said.

Senior analyst Gergely Suppan of Takarekbank said the October industrial output far exceeded expectations, a signal that the sector has recovered from the coronavirus crisis. Industrial performance could continue to stabilise in the coming months and show an annual increase in the last quarter, partly due to the weaker base and the calendar effect, he added. He said industrial output was expected to contract by 5.5-6.5 percent this year, and see a growth of 14-16 percent next year on that low base.

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