Hungary’s industrial output was up by 3.4 percent and by 6.7 percent in July 2015 and in the initial seven months of 2015, respectively. Data continue to show a sound growth structure: nine out of the altogether thirteen industrial sub sectors registered output increases, while the sector expanded in every region.

Thanks to rising order volumes and new funding avaialable for capacity expansion as of July, the Ministry is expecting further output growth for the remainder of the year.

Despite the outstanding, 12.4 percent growth figure registered in July 2014, the industrial sector managed to further increase output in July this year. The 3.4 percent increase indicated by both unadjusted and workday-adjusted data was mainly the result of the performance of the manufacturing sector, and -- within that -- of the motor vehicle manufacturing and related rubber product manufacturing sub sectors as well as the food industry.

Year-on-year, among larger divisions double-digit output growth was registered at the motor vehicle manufacturing sub sector, which accounts for one-third of total manufacturing sector output, and the related rubber product manufacturing sub sector. These two divisions added altogether 5.4 percentage points to the total result, due mainly to higher production capacities and steady external car industry demand. Output at the food industry, which constitutes more than 11 percent of total manufacturing industry output, grew by 1.7 percent.

For the remainder of the year, the Ministry expects favourable trends to remain in place: in July 2015, the total volume of orders was up by 11.1 percent year-on-year, but the volume of orders at key manufacturing sub sectors also increased by more than 2 percent. The volume of car exports to Western Europe soared by 9.6 percent, and future domestic demand is also seen higher. The fact that a large share of EU funding will be made available for capacity expansion as of July 2015 is also expected to boost output.

(Ministry for National Economy)