Recent data from the Hungarian Central Statistical Office reveals a continued decline in the country's industrial production throughout January. However, for the first time in over a year, retail sales saw an increase.
The data reveals a 4.1% decrease in yearly industrial production this January, a slight improvement from the 7.6% decrease in December. The decline in production was largely due to weak performances in most of the manufacturing subsections.
Only three subsections reported growth, led by the manufacture of coke and refined petroleum products. January saw a 1.1% month-on-month decline in industrial production, after a minor 0.2% increase the previous month.
When adjusted, January's industrial production was 3.6% lower than the previous year, slightly worse than the anticipated 3.4% decrease.
In contrast, retail sales rose by 0.6% year-on-year, rebounding from the 0.2% decrease in December. This marks the first increase in retail sales since December 2022.
A closer look reveals a 1.0% increase in sales volumes from non-specialised food and beverage shops. However, specialized food, beverage, and tobacco stores reported 2.1% fewer sales, while non-food retailers saw a 0.9% decrease.
Online sales and mail orders, which compromise 9.1% of total sales saw an encouraging 4.3% yearly growth. On a month-to-month basis, retail sales remained steady after seasonal and working day adjustments.
Separate data highlights a shift in Hungary's trade balance in January, with a surplus of €497 million, a significant change from the €403 million deficit recorded a year prior. This is due primarily to a faster decline in imports compared to exports.
Specifically, the value of exports decreased by 7.4% year-on-year in January, while imports fell by an even larger 14.0%.
