Hungary Manufacturing Growth Moderates in March

The HALPIM Manufacturing PMI fell to 50.4 in March 2026 from a downwardly revised 51.2 in the previous month and remained below its long-term monthly average of 52.6. Growth remained uneven across components, as new orders and production continued to expand but at a slower pace, while employment and supplier delivery times held in contraction territory. External demand softened slightly, with both import and export indices declining, while inventories of both purchased inputs and finished goods increased modestly. Notably, purchase prices surged sharply, marking the strongest monthly change and pointing to intensifying cost pressures. Overall, most indices continued in expansion but hovered near the threshold, pointing to continued but fragile growth.

The HALPIM Manufacturing PMI rose to 51.3 in February 2026, following an upwardly revised 50 in January, signaling a moderate expansion in the sector after a period of weakness in mid-2025. The index, however, remained below its long-term monthly average of 52.6, reflecting steady but subdued industrial activity. New orders and production volumes picked up, supporting a rebound in manufacturing output, while export and import indicators expanded, remaining above the 50-point threshold separating growth from contraction. However, employment continued in contraction territory, highlighting persistent weakness in labor demand, and purchase prices climbed sharply, reflecting rising input costs for manufacturers. Overall, activity remained below long-term norms, with growth momentum moderate and measured.

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.