Hungary’s industrial output fell year-on-year for the second month in a row in July as the larger-than-expected slowdown in the euro zone and a strong local currency continued to weigh on exports, the Central Statistics Office, or KSH, said Friday.

Industrial output declined 0.2% on the month and fell 1.8% on the year in July after a monthly decline of 1.6% and an annual fall of 0.3% in June.

Prior to that, industrial output hadn’t fallen since October 2002 when it was down 1.4% from a year earlier.

“I believe this is the third month in a row that industrial exports stagnated,” statistician Miklos Schiendele said at the time of the release.

Exports in the key electric machinery and equipment sector declined in July, while in the vehicle manufacturing segment they posted a “significantly lower growth rate than in previous months,” Schiendele added.

All other export-oriented sectors showed either a decline in exports or a considerable slowdown in growth compared with previous months.

In terms of domestic production, the trend of declining food output seen for several months continued in July, Schiendele said.

According to unadjusted data, annual industrial output growth was 0.6% in July while output in the first six months of 2008 increased 4.9% from a year earlier.

All figures are preliminary. The KSH will release detailed data on July industrial output Sept. 12.

Source: http://www.djnewswires.com/eu

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