CEE ECONOMY Czech, Hungarian industrial output stronger than expected in November – Reuters

Jan 7 (Reuters) – Industrial output in the Czech Republic and Hungary rose more than anticipated in November, revealing a pick-up even as cars and truck sector concerns continue to drag.The information was more proof main European economies most likely ended 2021 stronger than very first thought as market weathers supply chain crunches and rising input costs.Czech industry posted its second strongest month this year, revealing a 1.6% year-on-year output rise in November, while growing by 4.9% on the month, enhanced by equipment production. Register now for FREE endless access to Reuters.comRegisterHeadline figures in Hungary showed a 2.6% increase in output and 2.9% month-to-month gain. The two economies are highly depending on car production, which continued to fall in November amidst international chip lacks that have actually slowed automakers production.”This is a strong favorable surprise,” Peter Virovacz of ING in Budapest stated.”Until now we saw that industries with less weight might not cancel the results of shortages on the most crucial sectors of automobile manufacturing and electronics, and their problems dragged down industrial production as a whole.”In the Czech Republic, while vehicle production was down 7% in November, the information offered a view that industry could provide an end-of-year boost to financial growth, which has relied heavily on domestic demand after the end of lockdowns last spring.The statistics office said new orders rose 9.3% year-on-year, led by foreign demand.”Industrys issues with parts shortages or in supply chains are not over, but leading signs in December already showed that the circumstance has actually gradually enhanced,” stated Jakub Seidler, chief economist for the Czech Banking Association.Register now for FREE unlimited access to Reuters.comRegisterReporting by Jason Hovet in Prague and Anita Komuves in Budapest; Editing by Toby ChopraOur Standards: The Thomson Reuters Trust Principles.

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