Hungary’s construction output drops sharply in 2016
Hungary’s construction output dropped by 14.9% in December compared to the same month a year earlier, while output decreased by 18.8% and construction producer prices rose by an average of 2.8% in 2016 as a whole compared to 2015, Hungary’s Central Statistical Office (KSH) announced today in a first release of data.
In December, output decreased in both main groups of construction: while construction of buildings decreased year-on-year by 5.8%, that of civil engineering works fell by 25.5%. Based on seasonally and working day-adjusted indices, construction output increased by 1.4% in December compared to the previous month, the KSH said.
At the same time, the volume of new contracts was 114.1% higher than in the same period of the previous year, within which the volume of new contracts concluded was up by 34.4% for the construction of buildings and by 172.7% for the construction of civil engineering works, the KSH reported.
As far as 2016 as a whole is concerned, the volume of construction output was 18.8% lower than a year earlier. Compared to 2015, the volume of output decreased in both main groups of construction: by 3.7% in the construction of buildings, and by 33.0% in that of civil engineering works, the KSH said. The largest decrease occurred in the output of road and railway construction enterprises, it added.
In the fourth quarter, construction producer prices rose by 3.0% compared to the equivalent period of the previous year, while prices increased year-on-year by 5.3% in the division of construction of buildings, by 1.7% in the division of civil engineering works, and by 2.7% in the division of specialized construction works representing the greatest weight in the construction industry, KSH data show.
The observed subgroups of construction saw price increases of between 1.2% and 4.3%, while construction prices were 0.7% higher than in the previous quarter, the KSH added.
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