Hungary Manufacturing Growth Slows in July

Hungary's Manufacturing PMI edged down to 51.4 in July 2026 from an upwardly revised 51.6 in the previous month, remaining above the 50-point threshold that separates expansion from contraction. The reading stayed below its long-term monthly average of 52.6 but exceeded the average July level of 48.9 recorded over the past three years, indicating continued growth in manufacturing activity despite a slower pace. The moderation was driven by weaker new orders, although they remained in expansion territory, while production volumes increased slightly from June. Meanwhile, the purchase price index eased but continued to signal a strong rise in input costs. The employment index strengthened and remained in expansion, with both export and import indicators also pointing to continued growth.

The HALPIN Manufacturing PMI rose to 51.5 in June 2026 from 50.2 in the previous month, marking its highest level since December 2025, though it remained below its long-term monthly average of 52.6. The reading also exceeded the average June level of 50.0 recorded over the past three years, signaling a faster expansion in manufacturing activity compared with the previous month. Growth was driven by stronger new orders and higher production volumes, both of which remained in expansion territory. On the other hand, the purchase price index eased but continued to indicate a marked increase in input costs. The employment index stayed in contraction, while both export and import indicators pointed to continued expansion.

The HALPIN Manufacturing PMI fell to 50.2 in May 2026 from a downwardly revised 50.4 in the previous month, marking its lowest level since January and remaining below its long-term monthly average of 52.6. Growth in new orders and production eased during the month, accompanied by softer export demand. Purchasing activity remained on an upward trend, albeit at a slower pace, and inventory levels continued to rise. Meanwhile, employment showed signs of recovery after weakening in the prior month, indicating a modest improvement in hiring conditions. Input costs also continued to increase sharply, although the pace of price growth eased compared with April. Supplier delivery times remained under pressure, signaling ongoing supply chain challenges. Overall, manufacturing activity stayed in expansion territory but remained below the historical average for May, reflecting a more subdued pace of growth across the sector.