Following moderate expansion in August, as factories temporarily halted production due to summer recess, in September 2014 Hungary’s industrial output picked up speed again as expected and achieved outstanding growth of 7.6 percent year-on-year. Several factors are signalling that this growth is based on sound fundamentals: expansion has been underpinned by both exports and domestic demand; output was higher in twelve out of the altogether thirteen manufacturing sub sectors and output increased in the every Hungarian region in the initial nine months of the year.

In September 2014, industrial output has been up for the thirteenth consecutive month, contributing not only to the growth of exports, but to the creation of new jobs and the realization of new investment projects. In the initial nine months of this year, output soared by 8.6 percent year-on-year, while it was 5.2 percent higher month-on-month.

Besides the excellent performance of the vehicle manufacturing sector, expansion has also been fuelled by output at the food industry and at electric goods manufacturers. Vehicle manufacturing output increased again outstandingly, by 16 percent, while output regarding the manufacturing of computers, electronic and optical products was 6.8 percent higher and that of food, beverages and tobacco products was up by 4.3 percent. Growth continued at manufacturers of textiles, wearing apparel, leather and related products: thanks to rebounding exports, this sector registered the largest output increase with 21.4 percent.

With regard to sales of industrial products, it has been a favourable development that they were higher not only abroad but also within Hungary: domestic sales increased by 1.5 percent in the initial nine months of the year and by 2 percent in September, in comparison to the corresponding period of the previous year.

The fact that the total stock of new orders at manufacturing sub sectors jumped by 8.8 percent year-on-year signals steady future industrial expansion. Within the above figure, the volume of new export orders and new domestic orders was up by 8.2 percent and 17.2 percent, respectively. The total stock of industrial orders was 17.2 percent higher compared to September last year. Industrial performance has been a major factor behind economic growth; therefore the Government is aiming to boost industrial output in the coming years and to bolster the good performance of the Hungarian economy through an active industrial policy and re-industrialization.

(Ministry for National Economy)