Following the 7.1 percent expansion recorded in December 2014, the volume of Hungarian industrial output was higher again, as the sector posted 7.7 percent year-on-year growth in January 2015.

Thanks to capacity expansion within the car industry, the vehicle sector has been a major factor contributing to this performance. Industrial output has been on the rise for the past one-and-a-half years and this trend has been also driving Hungarian exports, employment and new investment projects. Further growth is expected to be underpinned by the model change at Suzuki, the three-shift work schedule at Audi introduced in August 2014 and the dynamic increase in domestic consumption coupled with higher food industry output.

The volume of output at the vehicle manufacturing and electronic consumer goods sectors surged by 11 percent and 30 percent, respectively. Output regarding coke and refined petroleum products was also significantly higher, gaining 20 percent, thanks primarily to soaring domestic sales.  Output volume at manufacturers of rubber, plastics and other non-metallic mineral products as well as pharmaceuticals was also sharply higher, by more than 10 percent.

Several factors show that industrial output growth has been based on a sound footing: among others, in January 2015, output was higher in eleven out of the altogether thirteen manufacturing sub sectors and expansion has been fuelled by both exports and domestic consumption. As the volume of the sector’s total orders jumped by 30 percent year-on-year and within that export orders gained 32 percent signal steady momentum ahead. The stock of total industrial orders was up by 20 percent compared to January 2014.

(Ministry for National Economy)