Automotive sector

bne IntelliNews – Hungarian automotive sector booms in April

Output in the automotive sector, Hungary’s largest manufacturing segment, fell 7.1% year-on-year in April, causing overall industrial production growth to slow to 3.1% year-on-year in April from 3 .6% the previous month, according to the second reading. by the Central Bureau of Statistics (KSH) on June 14.

On a monthly basis, production fell for the second month in a row, down 1.6%.

Hungarian industry quickly rebounded above pre-pandemic levels, but the growth trend has clearly stalled in the past two months, analysts said. The outbreak of war between Russia and Ukraine is dampening global economic growth, which will also affect Hungary’s export-dependent industry, analysts said.

The automotive segment, which accounted for 21% of manufacturing output in April, continued to be challenged by semiconductor shortages and supply chain issues, KSH said.

The weaker performance of automakers was offset by other sectors.

The detailed data shows that output from the computer, electronic and optical equipment segment, which accounts for 10% of manufacturing, grew 4.9% year-on-year. Output from the food, beverage and tobacco segment, which accounted for 12% of manufacturing output, increased by 11.9%.

Industrial sales rose 2.7%, with domestic sales up 13.3%, but export sales fell 3.8%.

In the first four months, production increased by 4.9% compared to the same period a year earlier. Industrial growth could be around 5 to 6% this year, according to analysts.