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Hungary construction sector decline widens to 9.2% in September

Output of Hungary's construction sector fell 9.2% in September from the same month a year earlier according to both unadjusted and workday-adjusted figures, the Central Statistical Office (KSH) reported.

In a month-on-month comparison, the sector's output fell a seasonally-adjusted 2.8% in September after rising in the previous two months and a fall in June. In a month-on-month comparison, output volume rose in five of the first nine months and dropped in four months.

Construction sector output slipped 10.5% in January-September from the same period a year earlier.

Hungary's construction sector output contracted every year since 2006, including a 4.3% drop in 2009.

In a breakdown of the sector, KSH said output of the building segment rose 5.0% in September from the same month a year earlier. The twelve-month rise was the third increase in a row but it slowed from 12.8% in August. Building construction output has been down yr/yr almost every month since June 2007.

Output of the civil engineering segment declined, in contrast, by 22%, continuing a steady decline since last November as many large budget-funded construction projects were completed last year. The high base explained part of the steep September decline.

In a seasonally adjusted month-on-month comparison, building segment output fell 5.7% in September, and the civil engineering segment declined 1%.

In January-September, the building segment declined 5.3% and the civil engineering segment fell 16.1% compared to the same period a year earlier.

New construction orders signed in September were down 11.1% from the same month a year earlier as new orders in the building construction segment rose 1.7% and declined one-fifth in the civil engineering segment. For January-September, new construction orders were down 7% from the same period a year earlier, with the building construction segment receiving 2.3% higher orders and the civil engineering segment receiving 14.3% less orders in volume terms than in January-September 2009.

Total order stock of the construction sector at the end of September was down 2.4% from twelve months earlier. All orders held were down 11.7% in the building construction segment and up 4.3% in the civil engineering segment. (MTI - Econews)