In October 2014, Hungary’s industrial output increased by 1.7 percent and thus the sector has been expanding for the fourteenth consecutive month. In the first ten months of the year, the sector registered growth of 7.8 percent, while it has expanded by 15 percent since January 2010. This growth has been based on a sound economic structure, as output was higher not only in every Hungarian region but also in the majority of manufacturing sub sectors.

Although October data are below those of the previous months, when growth typically exceeded 10 percent, this lower figure is partly due to the high base in October last year. This assumption is confirmed by the fact that industrial output grew by 0.4 percent between September and October. With regard to the future, the August start of a three-shift system at Audi and the launching of a new Suzuki model line at the beginning of 2015 will also boost future expansion.

This year, the volume of industrial exports was 9.9 percent higher in comparison to the initial ten months of 2013. Manufacturing sector output was up by 2.4 percent in October, while mining output soared by 11.8 percent year-on-year. Output growth was registered in eight out of the altogether thirteen manufacturing sub sectors. Output at the most significant segment, vehicle manufacturing, increased by 5.1 percent compared to last year, while the volume of vehicle manufacturing exports was 6.5 percent higher in October. Above-average output growth was registered concerning the manufacturing of rubber and plastics products, and other non-metallic mineral products as well as the manufacturing of machinery and equipment.

The fact that the volume of new manufacturing sector orders increased by 2.3 percent year-on-year and the total volume of orders jumped by 15.5 percent compared to the previous year signals future growth. Industrial output expanded in every Hungarian region. The largest increase, 22.3 percent, was seen in Bács-Kiskun County, where full-year growth is 23 percent.

The performance of the industry is a key factor behind economic growth, therefore the Government aims to bolster industrial output in the coming years and underpin the good result with an active industrial and re-industrialization policy.

(Ministry for National Economy)