Volatile PMI unreliable indicator of Hungary GDP growth

Hungary PMI recovered slightly to 50.7 in August and was the only country in the group that registered an increase in August. This is this is the second monthly low PMI following Q2 levels of nearly 54. The composition of PMI was mixed with output remaining low, new orders improving to a strong level, and exports improving slightly but remaining weak. Other than a slight deceleration in real GDP growth in 2015, overall, there is little other evidence of growth deceleration in Hungary. Furthermore, PMI has proven to be quite volatile in Hungary and not a reliable indicator of growth in recent years, says Barclays.