Hungarian Q3 GDP slightly revised upwards, beating consensus; IP stays below expectations

The third-quarter gross domestic product of Hungary was slightly revised upwards, beating market consensus, while the country’s industrial production for October came out below market expectations.

Hungarian GDP for the third quarter of 2016 was revised slightly to the upside from 2.0 percent y/y to 2.2 percent y/y and from 0.2 percent q/q to 0.3 percent q/q. / Hungarian GDP data beat the expectations.

Economy increased by 2.2 percent in the third quarter of 2016 compared to the same period of previous year while analysts anticipated only 2 percent growth. Better than expected GDP was mainly supported by market services and agriculture growth.

Industrial production for October came out below market expectations and reached -2.1 percent y/y.  Industrial production fell for the second consecutive month in year-on-year terms in October. A bit worrying may be the fact that production declined in almost all industrial sectors incl. car industry.

Together with retail sales figures for October released yesterday, industrial production indicate that beginning of the fourth quarter has been quite weak and that GDP growth may not accelerate more significantly in the fourth quarter, KBC Central European Daily reported.