A PMI index figure above 50 indicates expansion while a figure below 50 shows contraction in economic activity. 



Hungary's manufacturing PMI stood at 51.6 in April, down by 2.8ppts from March. This is the fourth time since August 2008 when the index is above 50 (all four in 2010). The contraction of the manufacturing industry that started in September 2008 has stopped; the sector grew compared to March, albeit at a smaller rate again, the issuer of the index noted. 

The index has been above 50 points for more than three years before it dropped to 42.6 in October 2008 and hit its all-time low at 38.5 in January 2009.

April has been a relatively strong month over the past few years; the headline indicator was below the 50-pt mark only in 2009 (43.0). The raw PMI showed a decline to 54.2 from 57.1 in March, and the seasonally adjusted figure also came in lower m/m.

Hungary’s manufacturing PMI was last in the positive territory for four months in a row in the summer of 2008, before the onset of the global crisis.

Bar four, every sub-index was above 50 points in the fourth month of 2010, while the new figures were smaller than in March in all but three categories."

Source: Portfolio Online Financial Journal