Adding to the outstanding performance registered in the previous month, industrial output growth in June 2014 increased by 11.3 percent year-on-year. In the initial six months of the year, output was 9.4 percent higher in comparison to the corresponding period of the previous year. Compared to the previous month, industrial output adjusted for seasonal and workday effects was up by 1.8 percent in June.

According to data by the Hungarian Central Statistical Office (KSH), industrial output increased in June 2014 by 11.3 percent year-on-year, thanks to a low base and the 12.9 percent growth of the manufacturing sector. Growth was recorded in twelve out of the altogether thirteen manufacturing sub sectors, ranging between 1.1 percent and 53.8 percent, in comparison to the corresponding month of the previous year. The increase of output volume was mainly attributable to growth within the vehicle manufacturing and related supplier sectors as well as to the higher output at the food and consumer electronics sectors.

In June 2014, the total stock of new orders of manufacturing sub sectors observed by KSH increased by 17.7 percent year-on-year, signalling a favourable outlook for this field within the national economy.

In the initial six months of 2014, the labour productivity of industrial enterprises with 5 or more employees jumped by 7.2 percent year-on-year, while the number of employees gained 2.3 percent.

In addition to the vehicle manufacturing sector, which has become a key growth engine, almost every manufacturing sub sector contributed to the growth registered in June, as domestic sales soared by 11 percent compared to the level of one year ago. The facts that domestic sales of the industrial sector increased by 1 percent in January-June and by 8.4 percent year-on-year in June are signalling that domestic demand has revived.

Industrial exports show a steady, robust performance as they grew by 12.2 percent in the initial six months of the year and by 15.1 percent in June, year-on-year. Exports of the vehicle manufacturing sector, which constitutes more than one-third of total exports and which is one of the two leading sub sectors that together provide almost half of total exports, were up by 24.4 percent in June. The export volume of the other main sub sector, the manufacturing of computers, electronic and optical products, -- which constitutes some one-seventh of total – increased by 1.2 percent.

Industrial output increased in each region in the first half of 2014. The largest output growth, 20 percent, was registered in Western Transdanubia while in other regions the sector expanded by 3.8-15 percent. As far as counties are concerned, industrial output growth was the highest in Győr-Moson-Sopron County, where in January-June 2014 this indicator was up by 26.1 percent, year-on-year.

(Ministry for National Economy)