Almost 3/4 of construction companies project higher revenue

Construction

Around 74% of Hungarian construction companies expect their net turnover to climb this year, a survey by industry association ÉVOSZ shows, according to a report by state news wire MTI.

About 15% project a decline in revenue and 11% augur stagnation, ÉVOSZ said.

Approximately one-quarter of companies expect higher profits this year, while 48% see no improvement. Most companies in the capital expect their profits to decline.

ÉVOSZ chairman Lászlo Koji explained that companies in Budapest have more high-value, longer-term contracts of the kind that don't allow modifications due to higher building material prices.

He said contractors do not expect building material prices to increase further this year, and they augur a correction of prices for critical materials, such as wood, insulation, and electric cable.

The association surveyed 400 companies, large and small, across the country.

The survey showed wood prices rose 160% in the first half of the year, although the increase was a more modest 86% in the capital alone. The price of insulation rose 45% and electrical cable prices climbed 35%.

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