Hungary May Industrial Output -0.4% On Year, +3.2% On Month
07/06/2012| 03:15am US/Eastern
By Marton Eder
BUDAPEST--Hungary's industrial output returned to growth in May after a surprise contraction the previous month, data released Friday by the Central Statistics Office, or KSH, showed.
Industrial output rose a monthly 3.2% in May after a 3.3% contraction in April. On annual terms Hungary's industry sector contracted 0.4%, according to unadjusted data. Bank economists polled by Dow Jones Newswires had forecast an annual decrease of 0.7% in May.
"The more positive picture is due to substantial new capacities going online in the automotive sector and the food sector returning to growth," KSH statistician Miklos Schindele told Dow Jones Newswires.
Analysts expect Hungary's industrial output to rise in the coming months as a new Mercedes Benz (>> Daimler AG) plant started operations earlier this year and Audi AG (>> Audi AG) is also expanding production capacities at its plant in Gyor.
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