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Construction sector output up 20.5% in October

Output of Hungaryʼs construction sector climbed 20.5% year-on-year in October, Hungarian news agency MTI says, citing unadjusted data released by the Central Statistical Office (KSH).

Output of the buildings segment was up 18.8%, lifted by construction of residential, cultural and industrial buildings, KSH said. Civil engineering output rose 22.3%, helped by road and railway developments.

In a month-on-month comparison, construction output rose 3.2%, adjusted for seasonal and workday effects.

For the period January-October, output was up 27% year-on-year.

In absolute terms, output stood at HUF 444 billion in October and HUF 3,547.9 bln in the first ten months.

Order stock in the sector was down 10.1% at the end of October from twelve months earlier. Stock rose 40.6% in the buildings segment but was down 21.7% in the civil engineering segment.

New order volume was up 2.7% as new orders for buildings fell 2.8% and civil engineering orders were up 8.5%.

Analysts interviewed by MTI said the construction sector had started the fourth quarter well and should make a significant contribution to economic growth.

Gábor Regős of Szazadveg Institute said full-year construction sector output growth could come close to 25% and the sectorʼs output should continue to grow in 2020, albeit at a slower pace.

András Horváth of Takarékbank said the sectorʼs output could grow by almost 30% in 2019 and about 10% next year.