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Construction output up 48% in February

The volume of construction output, based on raw data, was 48% higher in February 2019 than a year earlier, show the latest monthly data from the Central Statistical Office (KSH). Output increased in both main groups of construction: in the construction of buildings by 39.4%, and in civil engineering works by 65.4%.

Based on seasonally and working day-adjusted indices, construction output increased by 6.7% compared to the previous month.

The KSH said output in the building segment was lifted by construction of factories, residential and office buildings. In the civil engineering segment, the growth derived, as before, from the construction of roads and railways.

Of the divisions of construction, output volume increased by 43.3% in the construction of buildings, by 111.8% in civil engineering, and by 31.8% in specialized construction activities.

In absolute terms, at current prices, output of the construction sector rose to HUF 247.2 billion in February 2019, compared to HUF 151.4 bln in February 2018.

The volume of new orders increased by 22.1% in February, within which new orders for the construction of buildings went up by 178.3%, reflecting large-value contracts for industrial, cultural and sports facilities. Contracts for civil engineering works declined by 40.8% year-on-year.

The month-end stock of contracts at construction firms at the end of February was up 2.6% year-on-year. The stock of contracts rose by 53.2% for the construction of buildings, but fell by 10.6% for civil engineering works, compared to the end of February 2018.

In absolute terms, the order stock of the construction sector reached HUF 2.376 trillion at the end of February.

In January-February 2019, compared to the first two months of 2018, construction sector output climbed 39.0% to HUF 444.2 bln.

Construction data for March 2019 will be published on May 14.