Construction output up 17.5% in December, 22.3% in 2018

Construction

The volume of construction output, based on raw data released by the Central Statistical Office (KSH), was 17.5% higher in December 2018 than a year earlier. In 2018 as a whole, construction output grew by 22.3% compared to 2017, while construction producer prices were on average 9.5% higher than in the previous year.

Output in December 2018, compared to the same month of 2017, increased in both main groups of construction: in the construction of buildings by 14.8%, and in civil engineering works by 21.9%.

Based on seasonally and working day-adjusted indices, construction output decreased by 2.4% compared to the previous month.

In the construction of buildings, the December increase was due to the construction of factories, shops and homes, while in civil engineering, road, railway and utility infrastructure projects continued to generate the growth.

Of the divisions of construction, output volume increased by 21.2% in the construction of buildings, by 18.6% in civil engineering, and by 14.5% in specialized construction activities.

In absolute terms, at current prices, output rose to HUF 402.5 billion in December, up from HUF 309.3 bln in the same month of 2017. The December total was the highest monthly figure registered in 2018.

The volume of new contracts decreased by 71.9%, related to the high base of December 2017, within which the volume of new contracts concluded for the construction of buildings went up by 21.3%, while falling by 86.0% year-on-year for civil engineering works.

The month-end stock of contracts at construction enterprises in December decreased by 7.7% year-on-year. The stock of contracts decreased by 7.3% for the construction of buildings and by 7.8% for civil engineering works, compared to December 2017. In absolute terms, the order stock in the construction sector stood at just over HUF 1.9 trillion at the end of December.

In January-December 2018

In 2018 as a whole, compared to 2017, construction output rose by 22.3%. Construction of buildings grew by 16.0%, while output of civil engineering works increased by 31.4% in 2018.

In absolute terms, output in the sector reached HUF 3.347 tln at current prices, compared to HUF 2.491 tln in 2017.

In the fourth quarter of 2018, the KSH reported, construction sector producer prices increased by 10.7% compared to Q4 2017. Within the divisions of construction, prices increased by 13.2% year-on-year in the construction of buildings, by 8.0% in civil engineering, and by 10.7% in specialized construction activities, which carried the greatest weight.

Construction prices were up by 2.3% in Q4 2018 compared to the previous quarter.

Construction sector data for January 2019 will be published by the KSH on March 14.

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