Industrial Output December 2007

Hungary's industrial output grew by 5.3% year on year in December, according to both preliminary data (both unadjusted figures and data adjusted for working days) released today by the Central Statistics Office (KSH). In November industrial output yr/yr grew by 5.5%. According to figures adjusted seasonally and by working days, there was a monthly rise of 1.1% in December from November, against a 0.2% m/m increase the previous month.



KSH also reported thatHungary's industrial output grew by 8.1% yr/yr in the whole of 2007.

This result was not unexpected, but it does mean that industrial output was by and large flat across the fourth quarter. Also exports are now growing at a slower annual rate by the month. Output growth has basically been on a downward trend since the summer of 2007, and December's growth rate is the lowest y-o-y since March 2005. This environment is not likely to change anytime soon, so it looks like industrial output will continue to fade over the coming months adding to downside GDP risks and the pressure on the HUF