Output of Hungary’s construction sector jumped by an annual 27.8% in June, recovering from a double-digit decline in the base period, the Central Statistical Office (KSH) said on Friday.
Output of the building segment increased by 25% and civil engineering output shot up 32.1%. In absolute terms, output was worth 507.3 billion forints (EUR 1.43bn), with the building segment accounting for 57% of the total. In a month-on-month comparison, output rose a seasonally and workday-adjusted 3.5%.
Order stock in the construction sector was 21.2% higher at the end of June than twelve months earlier. Buildings segment orders were up 32.0% and civil engineering orders increased by 14.3%. New orders jumped 65.9% during the period, as new orders in the buildings segment climbed 72.4% and new civil engineering orders were up 56.1%. In January-June, construction sector output rose by 7.3% from the same period a year earlier.
Senior analyst Gergely Suppan of Takarékbank said the sector is supported by home construction and renovation, state infrastructure developments as well as industrial investments. However, construction work is hindered by building material shortages, longer delivery deadlines and steep increases in building material prices. Some investors could postpone investment plans as a result, he said. Planned road, railway and suburban rail developments could also give the sector a boost in the longer term, he added. Suppan forecast construction sector output growth of 10% this year compared to a 9.7% contraction in 2020.
hungarymatters.hu
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