BUDAPEST, Oct. 7 (Xinhua) -- Hungary's industrial production fell sharply in August, underscoring ongoing difficulties in the country's manufacturing sector, official data showed on Tuesday.
According to the Hungarian Central Statistical Office (KSH), industrial output declined by 7.3 percent year-on-year in August, the steepest drop in five years. In the first eight months of 2025, industrial production was down 3.9 percent compared with the same period last year.
Among major industries, output in the manufacture of transport equipment recorded a significant decrease, while production of computer, electronic, and optical products rose.
Economist Orsolya Nyeste from Erste Bank described the August figures as a "negative surprise," noting that the contraction was sharper than expected. Despite a slight improvement in European business sentiment, "hard data still show no major recovery," she said, adding that weak German factory orders continue to weigh on Hungary's industrial outlook.
The Ministry for National Economy said the government remains committed to supporting industrial recovery through financial tools aimed at small and medium-sized enterprises (SMEs). Starting Oct. 6, the Szechenyi Card Program will offer seven loan products at a fixed 3 percent interest rate for SMEs to enhance their financial stability and competitiveness. ■