Hungary's manufacturing sector saw a slight contraction in April 2025, as indicated by the latest Manufacturing Purchasing Managers' Index (PMI), which dropped to 50.2 from March's 51.2, according to data updated on May 5, 2025. This marks a pivotal moment as the PMI approaches the threshold that separates expansion from contraction in manufacturing activity.
In March, the PMI stood at 51.2, suggesting growth within the sector; however, the April reading of 50.2, while still indicating growth, is alarmingly close to the critical 50 mark. A PMI above 50 signifies that the sector is expanding, while a reading below 50 indicates a contraction in activity.
Industry analysts attribute the marginal dip to a variety of factors including potential supply chain disruptions and a deceleration in new order growth. The trajectory of this indicator in the coming months will be crucial for understanding whether Hungary’s manufacturing industry is entering a prolonged period of cooling or can rebound to stronger growth rates. As such, economic stakeholders in Hungary and abroad will be closely monitoring the responses and adaptations in the manufacturing sector against the backdrop of broader economic conditions.
