According to the latest report by the Hungarian Association of Logistics, Purchasing and Inventory Management (MLBKT), Hungary’s seasonally adjusted Purchasing Managers’ Index (PMI) reached 50.7 points in July 2025, signaling slight expansion in the manufacturing sector. While the figure remains below the long-term July average of 52.3, it surpasses the average of the past three years for this month (49.0). Most sub-indices show improvement, particularly in new orders and production volume.
The production volume index rose by 1.6 points, indicating increased output, while the new orders index saw a substantial 5.2-point jump – one of the strongest indicators of a rebound. The employment index also turned positive (50.2), breaking a two-month declining trend. Purchased inventory levels dipped slightly (–1.5 points) but remained expansionary, and both export and import indices stood above the 50-point threshold.
A closer look reveals a more nuanced picture: although purchasing volumes are growing, the current value is still the eighth-lowest July figure since 1995. Meanwhile, the index of purchasing prices indicates slower inflation – marking the fifth-lowest value in 30 years. Finished goods inventories dropped sharply by 5 points, signaling a reduction in stock levels. Respondents reported mixed market conditions, with price increases for steel, tin, and eggs, but declines for aluminum, livestock, packaging materials, and cocoa beans. Several material shortages were also noted.
The PMI hovers just above the growth threshold: July’s 50.7 reading suggests only modest expansion. While the trend offers cautious optimism, industry players remain sensitive to global and domestic economic shifts. The report confirms that purchasing decisions are early indicators of changing market dynamics – currently pointing to moderate, but positive momentum.
