Automotive manufacturing up 18.0%: Hungary's industrial output grows 4.7% in July
Hungary’s industrial output in July was 4.7% higher than a year earlier. The Central Statistical Office (KSH) confirmed this figure on Tuesday in its second estimate. Compared with June, seasonally and working-day-adjusted production rose by 1.7%.
This growth is driven by two sectors. “The increase in production volume was primarily due to growth in vehicle manufacturing and the production of computers, electronic, and optical products, while production declined in the majority of manufacturing subsectors,” writes KSH.
Vehicle manufacturing drives the increase
Vehicle manufacturing accounts for 27.4% of the manufacturing sector. Its production rose by 18.0%. The manufacture of motor vehicles increased by 35%, while that of parts and accessories rose by only 1.5%. Computers, electronics, and optics account for 14.7% and grew by 19.7%. Within this group, the production of computers and peripheral devices rose by 46%. Electronic components and printed circuit boards, on the other hand, declined by 12.0%.
The remaining sectors are struggling. The production of electrical equipment fell by 6.0%. This was driven by a 15.2% decline in batteries and accumulators. Food, beverages, and tobacco declined by 2.3%. Rubber, plastics, and building materials fell by 5.6%, while metal production and metal products dropped by 3.4%. The sharpest decline was seen in the production of coke and petroleum products, which fell by 14.0%.
Order Backlog Up 46% Year-Over-Year
Exports drove the increase. Industrial exports rose by 6.3%, while domestic sales increased by only 0.9%. In the automotive sector, export sales grew by 15.7%, and in the computer and electronics sector, by 36%.
Order books point to continued growth. New orders in the manufacturing sector in July were 17.8% higher than a year ago. Foreign orders rose by 20%, while domestic orders increased by 4.5%. The order backlog at the end of the month exceeded the previous year’s figure by 46%.
Over a seven-month period, the picture is more subdued. From January through July, Hungary’s industrial production grew by 2.7%. Export sales rose by 3.3%, while domestic sales fell by 2.0%. Of the thirteen subsectors of the manufacturing industry, seven contracted.
Regionally, the trends diverge sharply. The Northern Great Plain reported a 32% increase, while the Pest region saw a 18.3% decline.
What this means for German investors: Hungary’s industry relies heavily on a few sectors. German suppliers are benefiting from the upturn in automotive manufacturing but are feeling the impact of the slump in the battery sector. The 15.2% decline is hitting a sector in which European and Asian manufacturers have invested billions. Those manufacturing in Hungary should keep an eye on domestic sales: they have been falling by 2.0% since the beginning of the year. Growth is currently coming solely from exports.
Sources: Központi Statisztikai Hivatal, Industry July 2026, second estimate (EN/HU)
SK, Frankfurt