Hungary, Germany Industrial Output Contracts Sharply in June

Hungary's industrial production declined significantly by 4.9% year-over-year in June 2025, marking a faster drop than the previous month and exceeding economist expectations. The decline was largely driven by a sharp decrease in the manufacture of transport equipment, notably car production, while sectors such as food products, beverages, tobacco, computers, electronics, optical products, and electrical equipment saw modest growth. On a monthly basis, industrial output fell by 1.2%, continuing the downward trend observed in prior months. Despite the industrial slump, retail sales in Hungary expanded by 3.0% year-over-year in June, with notable increases in non-specialized food and beverage shops, non-food retail, and internet sales. Overall, the data highlights a challenging period for Hungary's manufacturing sector amid contrasting resilience in retail sales.