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Hungaryʼs construction sector output up 27% in June

The volume of construction output was 27.2% higher in June 2017 than the low base a year earlier. Output increased in both main groups of construction: by 26.1% in the construction of buildings, and by 29.6% in civil engineering works, according to a first release of data from the Central Statistical Office (KSH) Thursday.

Based on seasonally and working day-adjusted indices, construction output expanded by 1.1% in June compared to the previous month.

Growth in the construction of buildings in June was primarily the result of the construction of industrial and warehouse buildings and, to a lesser extent, sports facilities and educational buildings, the KSH noted. In the case of civil engineering works, output grew - apart from the low base factor - as a result of road and railway construction works.

Broken down further statistically into the individual divisions of construction, output increased by 17.8% in the construction of buildings, by 29.1% in civil engineering, and by 33.4% in specialized construction activities.

The volume of new contracts increased by 39.6% compared to the same period of the previous year. Within this, the volume of new contracts concluded grew by 26.8% for the construction of buildings and by 47.9% for civil engineering works.

As of the end of June, the volume of contracts of construction firms was 94.5% higher than the previous yearʼs low base. The volume of contracts was 41.0% higher for the construction of buildings and 126.8% higher for civil engineering works than a year earlier.

In the second quarter, construction producer prices rose by 4.6% compared to the corresponding period of the previous year. Construction prices increased quarter-on-quarter by 1.4%.

In January–June 2017, compared to the equivalent six-month period of the previous year, the volume of construction output grew by 27.0%, KSH data show.