Construction increases, but outlook gloomy

Construction

Output of Hungary's construction sector continued its 22-month-long streak of growth, with a 15.8% year-on-year increase in October, but a steady trend of dropping orders, which began in May, indicates that the sector will slow soon, according to reports.

According to the Central Statistics Office (KSH), output of the construction sector reached HUF 209.4 bln in October in absolute terms, at current prices. While building construction declined by 6.5% y.o.y., the output of the civil engineering segment was up 35.2%, KSH said.

Meanwhile, new orders signed during the month fell by a y.o.y. 26.7%, and have been dropping in y.o.y. terms since May. New orders in the buildings segment were down 5.4% and new civil engineering orders fell 34.1% from the previous month.

In a seasonally- and calendar-adjusted month-on-month comparison, construction sector output rose by 3.9%, civil engineering output rose by 4.4%, while output of the buildings segment fell by 3.4%. As with previous months, railway renovation, road construction works and utilities developments boosted civil engineering's performance.

The output of the construction sector grew by 17.8%, output of the building segment rose by 7.1% and output of the civil engineering segment climbed by 29.1% in the period of January-October, according to KSH.

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