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Hungary investment volume drops 4.9% yr/yr in Q2

Investment volume in Hungary dropped 4.9% year-on-year in the second quarter of 2010, and was down by a seasonally adjusted 0.6% from Q1, the Central Statistical Office (KSH) said on Tuesday. Investment volume has been declining yr/yr for the tenth quarter in a row, and a quarter-on-quarter rise in Q1 proved temporary.

A few large development projects tempered but did not offset the continued decrease home construction and the drop of major road projects, the KSH said.

Investment in the first half of 2010 was down 5.5% in volume terms from a year earlier.

The yr/yr decline slowed from a 6.4% drop in the first quarter, but exceeded the 3% decrease expected by analysts polled by the financial daily Napi Gazdaság.

The seasonally adjusted quarter-on-quarter drop followed a 0.5% increase in Q1. Investments dropped from the previous quarter in Q1 2009, rose in Q2 and dropped again in the third and fourth quarters of last year.

Investment into machinery, equipment and vehicles fell 1.3% from a year earlier in Q2 after a 2% yr/yr drop in Q1. Construction-type investment fell by 7.3% after dropping 9.3% yr/yr in Q1. Except for being flat in 2007, investments fell in volume terms each year since 2006. (MTI-Econews)