Industry: an unexpectional December ends a disappointing 2016

On a yearly average, industrial production rose by an insubstantial 0.9 in 2016%, which was way below what was expected by forecasters one year ago. Industrial performance in December, on the other hand, basically delivered what could be reasonably expected, which is not too much. The seasonally and working day adjusted production volume edged up further (by 0.5%). As a result, the working day adjusted year-on-year growth rate was 1.9%. Due to the negative working day effect, however, unadjusted production slipped by 0.5% in December on a yearly basis.

The seasonally and working day adjusted production volume was higher in the last quarter than the quarterly average in 2016 as a whole, which may be an indication of an improving trend, pointing to a less anaemic growth performance in 2017. Positive PMI readings in Hungary and in the Eurozone also suggest an acceleration, but whether this acceleration will be more than symbolic or not is uncertain at this point.

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