Hungary industrial output falls 3.7 pc in September, CPI climbs to 1.0 pc in October

Budapest, November 8 (MTI) – Output of Hungary’s industrial sector fell by an annual 3.7 percent in September, the Central Statistical Office (KSH) said on Tuesday.  Consumer prices in Hungary rose by an annual 1 percent in October.

The decline was the same when adjusted for the number of work days during the period.

In the previous month, output jumped by an annual 11.1.

Output was down a seasonally and working-day-adjusted 3 percent month on month in September.

Output rose an annual 1.5 percent in January-September.

ING Bank chief analyst Peter Virovacz said September output was well under expectations for a 3 percent increase. The automotive sector, a key driver of industrial output in Hungary, may have been behind the fall, as could have a labour shortage, he said. The decline was surprising because Hungary’s PMI suggests a growing stock of orders, he added.

Takarekbank analyst Gergely Suppan said the decline was probably due to one-off factors, such as the switchover to a new model at Japanese carmaker Suzuki’s plant in Hungary. Output could pick up in the coming months, though it may slow again from December, when German carmaker Audi scales back production at its base in Hungary to make preparations for the introduction of a new model, he added. He put full-year industrial output growth around 1.5 percent.

Hungary CPI climbs to 1.0 pc in October

Price growth accelerated from 0.6 percent in September, when CPI rose for the first time in five months.

In an assessment of the data, the National Bank of Hungary said the rise in inflation was mainly due to higher fuel prices, with higher oil prices and an increase in the excise tax on petrol and diesel contributing nearly equally.