The re-industrialization of Hungary made headway as in June 2015 industrial output grew by 6 percent year-on-year. Thus, the upward trend has been in place for two years in Hungary. The opening of new factories and R&D centres as well as the introduction of multi-shift work schemes at existing facilities has been creating more and more new private sector jobs. The strengthening industrial sector provides opportunities for Hungarian people; therefore the Government is committed to continuing the successful, active industrial policy.

Robust growth in June was mainly attributable to the manufacturing sector in general and the motor vehicle-, rubber product- and electronic goods manufacturing sub sectors in particular. Within these, motor vehicle output grew by more than 20 percent.

The fact that the Hungarian Central Statistical Office (KSH) recorded output growth in almost each of the altogether 13 manufacturing sub sectors shows the sound background of industrial sector expansion. As far as regions are concerned, industrial output was up in every one of them year-on-year.

Unadjusted and workday-adjusted KSH data for June 2015 indicate that the volume of industrial output increased by 11 percent and 6 percent, respectively, compared to the same period of the previous year. In the initial six months of the year, output – as expected – was 7.3 percent higher.

Improving confidence-, order volume- and car demand indicators foretell further expansion. However, data from the next two months are expected to be distorted by the seasonal effect of summer holidays. In the long term, the asset purchasing programme of the European Central Bank launched in March 2015, low raw material prices and production capacity expansion funding made available for SMEs as of July 2015 are also seen as future growth factors.

(Ministry for National Economy)