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Hungary construction output drops 10%

Output of Hungary's construction sector fell 10.4% in May from the same month a year earlier, according to both unadjusted and workday-adjusted figures, the Central Statistics Office (KSH) said on Friday. The twelve-month drop accelerated from a 8.4% fall in April.

The headline figure was dragged down by a sharp 35.1% drop in the "specialised construction works" branch, partly explained by a high base (the branch rose 21.6% yr/yr in May 2008). Output of the building construction segment slipped 0.6% in May after a 9.1% decline in April. Output of the civil engineering segment rose 41.8% after a 13.1% increase in April. Output of both the building construction and civil engineering branches also fell in the base period.

In a month-on-month comparison, construction sector output fell 3.3% in May following a 5.0% decrease in April, according to seasonally- and workday-adjusted data. Output in January-May was down 6.9% from the same period a year earlier.

In January-May, output of the building construction segment slipped 5.3%, output of the civil engineering rose 22.6% and output of the specialised construction branch dropped 20.1%.

Stock of orders in the construction sector rose 26.4% in May from twelve months earlier, because of a low base and big orders signed over the past several months, KSH said. Stock of building segment orders rose 11.6% in May, slowing from a 19.0% increase in April, and stock of civil engineering orders jumped 40.3% in May - level with the increase in April - because of road, railway and telecommunications cable contracts.

Stock of new construction sector orders increased 16.3% in May from the same month a year earlier. New building segment orders dropped 10.1%, slipping faster than the 7.3% fall in April, while civil engineering orders jumped 56.9%, picking up from a 15.6% increase in April. (MTI-ECONEWS)