Manufacturing recovery: November’s BMI rose to 53.4 points

The majority of respondents indicated a more favorable market environment:

• nine sub-indices are also in the recovery band,
• the employment indicator is again above 50 points – 51.5 points,
• new orders increased significantly, by +6.1 percentage points,
• production volume increased at an accelerating pace (+3.3 percentage points).

At the same time, the delivery lead time deteriorated again, falling below 50 points, which continues to indicate logistical capacity constraints and supply chain problems. Imports fell, but the export index continued to improve, indicating a recovery in external demand.

Prices and inventories: increasing cost pressure

Purchase prices are rising again (+2.6 percentage points), while the level of finished goods and raw material inventories has also increased – companies are once again daring to produce for storage, which indicates confidence in future demand.

Supply Chain Focus

Participants reported price increases for several basic inputs (e.g., metal raw materials, wires, eggs), while prices for aluminum and some packaging materials, for example, decreased. Shortages continue to occur, including bearings and electronic components.

Based on the November data, the Hungarian manufacturing industry continues to strengthen, and employment has also recovered from the stagnant band. The demand side is supportive, but delivery delays and rising costs continue to call for caution.