The trade surplus in Hungary hit €665 million in August, an increase from €559 million in the previous month.

This is according to data published by the Central Statistical Office (KSH), as reported by state news wire MTI.

Exports declined 1.7% year-on-year to €11.294 billion, falling for the first time in nearly two years. Whilst imports dropped 18.7% to €10.629 billion, declining for the fifth consecutive month, Budapest Business Journal reports.

In addition, trade with other European Union member states made up 77% of Hungary's exports and 70% of the country's imports throughout the month.

Hungary's terms of trade rose 11% over the month as the Forint strengthened to 4.2% against the Euro and 11% against the US Dollar.

Furthermore, between January and August, Hungary's exports increased 8.9% year-on-year to €100 billion, whilst imports declined 3.2% to €94.413 billion. The trade surplus registered €5.586 billion.

Elsewhere, Hungary's seasonally adjusted Purchasing Managers Index (PMI) increased to 50.5 points in October from September's reading of 47.4.

Last month's reading surpassed the 50-mark that divides growth from contraction in the manufacturing sector, according to the Hungarian Association of Logistics, Purchasing and Inventory Management (Halpim) on Thursday.

In regard to the PMI sub-indices, the new orders index also increased over the 50 level, as did the production volume index.

In contrast, the employment index in Hungary declined under 50 to signal a contraction, and the delivery times index also dropped and remained under the 50-mark.

Whereas, although the gauge of purchased inventories edged up, it stayed under the 50-point level.