Despite the rosy picture painted by the past three months of PMI readings, industry is struggling to rebound. As such, the decoupling between the soft and hard data continues.
The November industrial performance further increases the odds of a technical recession in Hungary. According to the latest data release, the volume of industrial production rose by 0.8% on a yearly basis, adjusted for working days. However, if we consider the -0.7% Month-on-Month (MoM) industrial performance, which comes after a truly disappointing October data release (-3.5% MoM), we can say that the underperformance of industry did little to improve the big picture about the Hungarian economy in the fourth quarter of 2022.