Hungary Manufacturing PMI Returns to Contraction

The HALPIM Manufacturing PMI fell to 49.3 in January 2026, following an upwardly revised over two-year high of 54 in the previous month, marking a return to contraction after four consecutive months of expansion and signaling a notable slowdown in industrial activity at the start of the year. The decline pushed the index below both its long-term monthly average of 52.6 and the three-year average for January of 49.8. New orders fell sharply, while production volumes also declined, reflecting one of the weakest January performances in decades. Employment edged into contraction, highlighting broad weakness in the sector. Export and import activity softened as well, although both remained marginally above the 50-point threshold separating growth from contraction.

Hungary’s seasonally adjusted manufacturing PMI inched up to 53.7 in December 2025 from an upwardly revised 53.6 in November, remaining firmly above the long-term average of 52.3 and signaling continued expansion. The December reading also marked the highest reading since May 2023 and exceeded the average for the month over the past three years, a period marked by slowing growth, high inflation after Russia’s 2022 invasion of Ukraine, and a recession in 2023 that left the economy largely stagnant. Most index components rose month-on-month, with new orders increasing and staying in expansion, while the employment index climbed above the 50-point mark, indicating growth in factory jobs. Purchase prices rose, reflecting higher input costs, and both export and import indices showed growth, pointing to improving trade conditions.

Hungary’s seasonally adjusted manufacturing PMI rose to 53.4 in November 2025 from a revised 51.2 in October, signaling the strongest expansion in the country’s factory activity since May 2023. Growth was broad-based, with both new orders and production rising, while employment returned to expansion with the index above 50. Purchase prices increased, reflecting higher input costs, and both export and import indices showed expansion. Most index components improved from October, marking a continued recovery after summer contractions. The November reading also exceeded the three-year average for the month of 50.9, highlighting a rebound in manufacturing compared with past periods of slower growth and inflationary pressures.