In May 2014, industrial output grew by some 10 percent, while in the initial five months of the year the sector expanded by 9 percent. Output growth, which has been steady for the ninth consecutive month, was also underpinned by the double-digit increase in manufacturing sector output, as ten out of the altogether thirteen sub sectors registered expansion. The firm performance of the Hungarian industrial sector over the past period also proves the success of the active industrial policy pursued in the past years, therefore the Government aims to continue with the re-industrialization of the country.

According to data compiled by the Hungarian Central Statistical Office (KSH), industrial output in May was up by 9.6 percent year-on-year, and thus the upward trend in place since September 2013 has continued. Output growth was mainly attributable to the vehicle manufacturing sector and related supplier divisions as well as improved output at the food industry and electronic consumer goods.

In May 2014, output at the vehicle manufacturing sector, one of Hungary’s industrial growth engines, jumped by 23.9 percent, while the output volume of consumer electronics soared by more than 31 percent. Thanks to the growth in exports, which constitute four-tenth of total sales volume, output of food, beverages and tobacco products increased by more than 5 percent. As a result of increased foreign market demand, output of textiles, wearing apparel, leather and related products grew by some 16 percent, while that of coke and refined petroleum products gained 27 percent. The 86.4 percent output growth regarding railway locomotives and rolling stock was also remarkable. The fact that in the initial five months of the year industrial production volume was higher in every region is signalling sound output growth.

The large increase in the stock of new orders also presages the sector’s steady future expansion: the total stock of new orders at industrial divisions increased by 14 percent, within which new export orders and new domestic orders were up by 13.7 percent and 15.6 percent, respectively. The total stock of orders grew by 19.2 percent year-on-year.

(Ministry for National Economy)