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Industrial output up 39.1 percent in May

Industrial output in May increased by an annual 39.1 percent from a low base, the Central Statistical Office said (KSH) on Wednesday.

Working day-adjusted output was up 40.2 percent, while compared with April output was up 3.4 percent based on seasonally and working day-adjusted data.

In the first five months of the year, output grew by an annual 18.1 percent.

All manufacturing sectors contributed to the growth, in particular vehicle production on the back of a low base due to factory shutdowns in May the previous year. Output of computer, electronics, optical products and food, beverages and tobacco products went up below the industrial average.

Peter Virovacz of ING Bank said May’s figures were “extremely positive”, given the “severe pressures” this part of the economy is currently under due to recent supply problems regarding raw materials and semi-finished products.

Daniel Molnar of Szazadveg cited problems associated with the shortage of microchips and the rapid rise in industrial producer prices, though, he added, renewed foreign trading was likely to contribute significantly to economic growth in the rest of the year.

Gergely Suppan of Takarekbank said a further steady recovery in industrial output was likely in the coming months as pent-up demand is released and inventories replenished.

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