Hungary Factory Activity Sees Improvement in April

The HALPIN Manufacturing PMI rose to 50.5 in April 2026 from a downwardly revised 50.3 in the previous month, remaining below its long-term monthly average of 52.6. The sector recorded a slight expansion, as new orders continued to grow, supported by a moderate increase in order backlogs. Production also strengthened, and purchasing activity remained in expansion territory. External demand showed improvement, with both export and import indices increasing. However, employment conditions weakened further, remaining firmly in contraction and signaling ongoing labor market softness in the sector. Supplier performance also deteriorated, pointing to continued shortening of delivery times. Price pressures intensified notably during the month, marking the largest monthly increase among all components.

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.