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Construction industry liquidations steady

Although Hungary's Central statistics Office (KSH) reported that construction-industry output rose 16% yr/yr in June, the number of companies that went under liquidation decreased only slightly in July compared to the spring of this year, company information service provider Opten told MTI on Tuesday.

Construction industry output likely grew as a result of a few major public investments that did not affect the entire sector, Opten said.

Opten strategic director Hajnalka Csorbai said the number of companies placed under liquidation rose 22% in H1 2009 and rose 36% yr/yr in July. The number of winding-up procedures showed a similar trend, rising 52% in H1 2009 and 68% yr/yr in July.

Csorbai noted that an increasing number of companies with large revenues have entered liquidation, adding that this poses a threat to small enterprises.

The number of new companies established fell 23 % yr/yr to 439 in July. The number of new companies dropped 30% yr/yr in January-July 2009. (MTI-ECONEWS)