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Construction sector output climbs 28% in June

The volume of construction output was 28.2% higher in June 2018 than a year earlier based on raw data. Output increased in both main groups of construction; by 15.2% in the construction of buildings, and by 48.8% in civil engineering works. Based on seasonally and working day-adjusted indices, output rose by 7.2% in June compared to the previous month.

In the construction of buildings in June, the increase was due to the construction of educational, industrial, commercial and residential facilities, while in civil engineering it was due to construction of roads, railways and utility projects, according to monthly data from the Central Statistical Office (KSH).

Of the divisions of construction, output increased by 30.8% in the construction of buildings, by 54.5% in civil engineering, and by 12.6% in specialized construction activities.

The volume of new contracts increased by 0.6%, within which new contracts concluded for the construction of buildings fell by 12.1%, while rising by 8.1% for civil engineering works. High-value new contracts were principally concluded for the development of traffic infrastructure in June.

As of the end of June, the stock of contracts at construction enterprises was 62.1% higher year-on-year. The stock of contracts was 7.5% higher for the construction of buildings, and 82.9% higher for civil engineering works than a year earlier.

In January-June 2018, compared to the first half of 2017, construction output increased by 19.1% overall.

In absolute terms, output stood at HUF 320.1 billion in June, and HUF 1,252.4 bln in January-June 2018.   

In the second quarter alone, construction producer prices increased by 9.2% compared to the corresponding period of the previous year. Within the divisions of construction in the second quarter, prices increased by 11.7% year-on-year in the construction of buildings, by 6.9% in civil engineering, and by 9.3% in specialized construction activities, carrying the greatest weight.

Construction output figures for July 2018 will be published by the KSH on September 14.