Professional association sees construction sector contracting 10-12%

Automotive

Hungarian building industry association EVOSZ believes the construction sector could contract 10-12% this year, an even bigger decline than the 8-10% projected earlier, deputy chairman Laszlo Koji said on Monday, after the Central Statistics Office (KSH) published fresh data.

KSH said construction sector output fell 12.3% year-on-year in August, slowing from a 15.4% decline in July. In a month-on-month comparison, output rose 1.6% in August.

New order stock is falling, which means there will be no noticeable pickup on the market for the next six months to a year, Koji said.

Koji welcomed the government's recently announced "home creation" program, but said the scale of the funding involved is still a big question.

Takarékbank analyst Gergely Suppan said the month-on-month expansion of the sector in August was a positive sign, but he added that the rise was small and likely the result of a low base.

The outlook for the sector is not good considering the low stock of orders, he added.

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.

Support the BBJ

Industry