UPDATE: Hungary Leaves Aug Indus Output Data Unch, -1.2%YY

BUDAPEST --Hungarian industrial production fell in August from a year earlier as the slowdown in Europe, the country's main export market, continued to affect companies of all sizes, final data released by the central statistics office KSH showed Wednesday.

Output fell in August this year also because there were two fewer work days than during the same period a year earlier, the KSH added.

Industrial output was down 1.2% on the year in August, unchanged from a preliminary reading published Oct. 7, marking the third consecutive year-on-year decline since June.

Output was up 0.8% from July, also unchanged from the preliminary reading.

Export sales rose 1.6% on the month and were down 1.3% on the year in volume terms, compared with a monthly fall of 0.1% and an annual fall of 2.8% in the previous month.

Domestic sales rose 0.4% on the month and fell 2.1% on the year in volume terms in August, compared with a monthly rise of 0.6% and an annual fall of 1.3% in July.

Monthly data are adjusted seasonally and for the number of working days while annual figures are adjusted for the number of working days.

Under unadjusted data, output was down by 5.9% from a year earlier in August, also unchanged from the preliminary reading.

In the first eight months of the year, industrial output was up 3.6% from the same period of last year, according to unadjusted figures.

Manufacturing sector output fell by 7.1% on the year in August, mostly due to fewer working days, but a considerable development as the sector hasn't declined since February 2003.

Output fell at companies of all sizes, the KSH noted.

Industrial output per employee, or unit labor productivity, at companies with five or more employees rose by 3.7% in the first eight months of the year compared with a year earlier, while employment fell 0.2% over the same period.

The stock of new orders fell in August, by 0.8% from a year earlier, as new export orders were up by 4.1% but new domestic orders plunged 22.5%. The total order stock was 16.2% higher than a year earlier, the KSH said.

Statistics office's Web site: www.ksh.hu

-By Margit Feher, Dow Jones Newswires; +361-267-0622; margit.feher@dowjones.com