Industrial Output Climbs 6.7% in March

Output of Hungary's industrial sector rose 6.7% year-on-year in March, a first reading of data released by the Central Statistical Office (KSH) on Wednesday shows.

Output climbed 3.7% when adjusted for the number of workdays.

Output increased in most branches of manufacturing, KSH said. Among the biggest, output in the computer, electronic and optical products segment, the electrical equipment segment, and the food, drinks and tobacco segment "grew significantly", while output in the automotive segment rose "slightly," it added.

In a month-on-month comparison, output rose a seasonally- and workday-adjusted 3.1%.

For the period January-March, industrial output rose 1.0% year-on-year.

KSH will release detailed data for the month on May 13.

Erste Bank chief macro analyst Orsolya Nyeste called the fresh data a "significant positive surprise," adding that the improvement in the industrial sector explained the better-than-expected first-quarter headline GDP data released earlier.

ING Bank senior economist Péter Virovácz noted that output of the sector had risen in three of the past four months, indicating the development of an upward trend. He added that the persistence of that trend would depend on the conflict in the Middle East and the impact on energy markets and supply chains.