The rebound in production was boosted by improving export sales, which rose an unadjusted 13.4% from a low base.

Exports of electronic, optical and computer products were up an annualised 23.9% in January, while vehicle sales climbed 18% in the same period.

Domestic industrial sales remain a concern, according to analysts, with a 12.6% decline posted in January. New orders were down 36% year-on-year, following an 8% drop in December.

Analysts say it is too early to draw conclusions from the January data, but they expect a slow improvement in the coming months.

The pace of growth will depend on the performance of Western European economies and how Hungarian exporters can benefit from that, analysts say.

The indicators for manufacturers are mixed, Napi Gazdasag observes. The Purchasing Managers Index for February was stable at over 55.9%, but Ecostat's Top-100 confidence index showed stagnation in the outlook for large companies."

Source: Hungary Around the Clock.

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