Construction output up over 35% in H1 2019


Output of Hungaryʼs construction sector climbed 20.3% year-on-year in June, show data released Monday by the Central Statistical Office (KSH). In a month-on-month comparison, output rose 1.7% from May, adjusted for seasonal and working day effects.

Output of the buildings segment was up 23.5% in June, lifted by construction of industrial buildings and warehouses, the KSH said. Civil engineering output increased 16.5%, supported by road, utility and railway projects, it added.

For the period January-June 2019, construction sector output was up 35.1% year-on-year compared to the first half of 2018.

In absolute terms, output stood at HUF 409.7 billion in June alone, and totaled HUF 1.832 trillion in the first half of 2019.

The order stock in the sector was down 11.2% at the end of June compared to 12 months earlier. The stock rose 31.7% in the buildings segment, but was down 21.2% in the civil engineering segment.

The new order volume was up 0.9% as new orders for buildings rose 27.4%, while civil engineering orders fell 12.6%.

Producer prices up 10% in Q2

In the second quarter of 2019, construction producer prices increased by 10.2% compared to the corresponding period of the previous year.

In the second quarter, within the divisions of construction, prices increased by 11.8% in the construction of buildings, by 8.7% in civil engineering, and by 10.0% in specialized construction activities (carrying the greatest weight) compared to the second quarter of the previous year.

Construction prices were 2.2% higher than in the preceding quarter.

Construction data for July 2019 will be published on September 13.

Slowdown expected in H2

Commenting on the data, László Koji, head of the National Federation of Hungarian Building Contractors (ÉVOSZ), was cited by state news wire MTI as saying that he expects output growth in the sector to slow down in the second half of the year, partly due to the high base. Civil engineering performance in particular is expected to show a decline as EU monies available for infrastructure developments in the 2014-2020 period were already placed out in 2017-2018 by the government, he added.

Analyst András Horváth of Takarékbank also noted the slowdown in construction output growth, which followed very strong growth data at the beginning of the year. He said the question is the extent to which the slowdown can be attributed to temporary factors such as labor shortages and the phasing out of the preferential VAT rate on home construction.

Number of Doctors per 10,000 Inhabitants Reaches 44 Figures

Number of Doctors per 10,000 Inhabitants Reaches 44

Karácsony Declared Winner in Budapest Mayoral Race After Rec... Elections

Karácsony Declared Winner in Budapest Mayoral Race After Rec...

Kecskeméti Konzerv Sold With Legal Support From Wolf Theiss Deals

Kecskeméti Konzerv Sold With Legal Support From Wolf Theiss

White Party at The Duchess Coming This Weekend Drinks

White Party at The Duchess Coming This Weekend


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.