FxWirePro: Daily Commodity Tracker - 21st March, 2022 
According to data released by Hungarian Association of Logistics, Purchasing and Inventory Management (HALPIM) on Friday, 1st April, Hungary’s manufacturing purchasing manager index (PMI) dropped to 51.7 points in March from 54.8 in February.
The decline was preceded by a rising trend that started in January. Consensus expectation was for a considerable increase of 3.5% because output had also declined by 0.1% m/m in January because of what was assumed to be one-offs in the auto sector.
The February data suggest that the January reading may not have entirely been a one-off, that activity is decelerating cyclically as has been signalled, in fact, by the PMI; the Hungarian PMI has slipped back towards 50 from much higher levels a quarter ago. This trend will also support the CenBank's decision to re-start the rate easing cycle, which is set to continue.
"After enjoying a strong couple of years on the back of strong euro zone demand for autos, Hungarian activity has calmed down, which supports our sub-consensus 2.2% GDP growth forecast for 2016." said Commerzbank in report.
