In a significant development for Hungary's economy, the latest data shows that the country's Manufacturing Purchasing Managers' Index (PMI) slipped to 48.9 in June 2025, from a previous 50.1 in May. This marks the first time the PMI has fallen below the crucial 50.0 threshold since April 2024, indicating a contraction in manufacturing activity for the month of June.
A PMI reading above 50 signifies expansion, while a reading below 50 indicates contraction. The decline to 48.9 suggests that the manufacturing sector in Hungary is facing headwinds, impacting the overall industrial productivity in the region. This fall, which is 1.2 points lower than May's figure, signals a challenging period for manufacturers who are grappling with potentially weaker demand and other market complications.
The updated figures, released on July 1, 2025, reflect mounting concerns among industry stakeholders about the sustainability of industrial growth within Hungary. Economists are closely monitoring the situation to assess the implications for the broader economy, as decreasing manufacturing activity can have far-reaching effects on employment and investment if the trend continues. The next PMI release will be keenly observed for signs of either recovery or further contraction.
