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Hungary construction sector contraction slows to 1.9% in August

Output of Hungary's construction sector fell 1.9% in August from the same month a year earlier according to both unadjusted and workday-adjusted figures, the Central Statistical Office (KSH) reported. The decline slowed from a 4.6% drop in July, and a 19.7% drop in June.

In a month-on-month comparison, the sector's output rose a seasonally-adjusted and working-day adjusted 0.8% in August after a 3.5% rise in July and a 2.3% fall in June. In a month-on-month comparison, output volume rose in five of the first eight months and dropped in three months.

Construction sector output slipped 10.8% in January-August from the same period a year earlier.

Hungary's construction sector output contracted every year since 2006.

In a breakdown of the sector, KSH said output of the building construction segment rose 12.8% in August from the same month a year earlier. The twelve-month rise was the second increase in a row. Building construction output has been down yr/yr almost every month since June 2007.

Output of the civil engineering segment declined 17%, continuing a steady decline since last November as many large budget-funded construction projects were completed last year.

In a month-on-month comparison, building segment output rose 10.4% in August, while the civil engineering segment declined 6.3%.

In January-August, the building segment declined 6.9% and the civil engineering segment fell 15% compared to the same period a year earlier.

New construction orders signed in August were down 35.4% from the same month a year earlier as new orders in the building construction segment fell 23.2% and declined 45.4% in the civil engineering segment. For January-August, new construction orders were down 6.5% from the same period a year earlier, with the building construction segment receiving 2.5% higher orders and the civil engineering segment receiving 13.6% less orders in volume terms than in January-August 2009.

Total order stock of the construction sector at the end of August was down 2.5% from twelve months earlier. All orders held were down 8.4% in the building construction segment and up 1.8% in the civil engineering segment. (MTI-Econews)