FX.co ★ Hungary Factory Activity Edges Down in May

The HALPIM Manufacturing PMI registered a slight decline to 50.1 in May 2025, down from 50.2 in April. This marks the seventh consecutive month of expansion in the manufacturing sector, although at the slowest rate since January. The index figures notably underperformed when compared to both the long-term monthly average and the average for May over the past three years. Domestically, manufacturing is exhibiting modest growth, continuing its gradual recovery following a sustained downturn since last June. Unfortunately, most sub-indices showed a decline compared to the previous month. The employment index has shifted into contraction, and new orders have dropped below the critical 50-point threshold. Concerning pricing, input costs have increased, indicating rising price pressures. Meanwhile, the demand from foreign markets presents a mixed picture: exports have fallen below the neutral level, whereas imports continue to demonstrate growth.