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Hungary construction sector contraction slows to 4.6% in July

Output of Hungary's construction sector fell 4.6% in July 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 double-digit drops in the second quarter, including a 19.7% drop in June.

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

Construction sector output slipped 12.3% in January-July 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 3.1% in July from the same month a year earlier. The twelve-month rise was the first such increase since June 2009 although it came from a low base. Output of the civil engineering segment declined 11.2%, 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 3.3% in July, while the civil engineering segment grew 1.7%. In January-July, the building segment declined 10.2% and the civil engineering segment fell 14.7% compared to the same period a year earlier.

New construction orders signed in July were down 23% from the same month a year earlier as new orders in the building construction segment grew 2.5% and fell 35.2% in the civil engineering segment. For January-July, new construction orders were practically unchanged from the same period a year earlier as new contracts for buildings rose 8.7% but the volume of new civil engineering orders were 6.4% lower than in January-July 2009.

Total order stock of the construction sector at the end of July was up 4% from twelve months earlier. All orders held were down 2% in the building construction segment and up 8.5% in the civil engineering segment. (MTI – Econews)