Construction output falls 12.8% in October
The volume of construction output in Hungary was 12.8% lower in October 2016 than a year earlier, according to a first release of data from the Central Statistical Office (KSH). Based on seasonally and working day-adjusted indices, construction output decreased by 3.8% in October compared to the previous month.
In October 2016, compared to the same month of 2015, the volume of output decreased in both main groups of construction: by 7.2% in the construction of buildings, and by 18.2% in civil engineering works. The decline in civil engineering works was primarily caused by the completion of projects carried out using EU funds at the end of 2015. Compared to the corresponding period of the previous year, the largest decrease was recorded in the output of utility construction enterprises in October.
Of the divisions of construction, output decreased by 6.3% in the construction of buildings, while falling 19.9% in civil engineering and by 12.3% in specialized construction activities.
The volume of new contracts was 11.9% lower than in the same period of the previous year, within which the volume of new contracts concluded was down 54.2% for the construction of buildings and, in contrast, up 52.9% for civil engineering works. The main reason for this increase was the signing of several large contracts for road construction. In the construction industry, high-value contracts with long-term implementation may cause a significant month-by-month change in volume indices, the KSH notes.
At the end of October, the month-end volume of contracts of construction enterprises was 23.9% higher than the previous yearʼs low base. Within this, the volume of contracts was 0.2% higher for the construction of buildings and 42.8% higher for the construction of civil engineering works.
In January-October 2016, the volume of construction output was 19.8% lower compared to the corresponding ten months of the previous year.
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