Construction sector output jumps 27.3% in November
Output of Hungaryʼs construction sector climbed 27.3% year-on-year in November, according to raw data released by the Central Statistical Office (KSH) on Tuesday. Output grew in both main groups of construction: in the construction of buildings by 17.8%, and in civil engineering works by 40.2%.
In the construction of buildings, the increase was due to industrial, commercial and residential projects; in civil engineering, road, railway and utility construction continued to generate the growth.
Of the divisions of construction, output increased by 26.5% in the construction of buildings, by 54.5% in civil engineering, and by 12.8% in specialized construction activities.
The volume of new contracts increased by 30.4%; within this, the volume of new contracts concluded for buildings rose by 14.0%, while new civil engineering contracts increased by 45.6% year-on-year. In November, contracts of high value were signed for industrial buildings, as well as for road and railway construction.
The volume of contracts at construction enterprises as of the end of November was up 37.9% year-on-year. The stock of contracts decreased by 4.0% for the construction of buildings, but increased by 51.6% for civil engineering works, compared to November 2017.
Based on seasonally and working day-adjusted indices, construction output in November rose by 4.4% compared to the previous month.
In January-November 2018, compared to the first 11 months of 2017, construction output rose by 22.9%.
In absolute terms, the value of construction output stood at HUF 369.7 billion in November, and totaled almost HUF 2.942 trillion in January-November 2018.
Construction output data for December, and for the full year 2018, will be published on February 13.
Construction orders of HUF 25 tln until 2023
The construction sector has a HUF 25 trillion order stock stretching until 2023, with around HUF 15 tln coming from state-funded infrastructure projects, László György, state secretary for economic planning and regulation at the Ministry for Innovation and Technology, said on Tuesday, according to state news wire MTI.
To deal with construction sector capacity constraints, the government is providing HUF 36 bln of funding between 2018 and 2020 for modernizing SMEs in the sector, of which HUF 16 bln was distributed last year, he added.
György said the government estimates construction sector output grew by 25% annually last year and noted that there could be more than HUF 3 tln of investments in Hungary in the next three years, helping growth.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
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.