Construction Sector Contracts in June


Output of Hungary’s construction sector fell by an annual 8.1% in June, contracting for the first time in more than a year, the Central Statistical Office (KSH) said. Output of the buildings segment fell by 4.8% and civil engineering output dropped by 11.7%. In absolute terms, construction sector output reached 579.1 billion forints (EUR 1.5bn) in June.


László Koji, who heads construction industry association ÉVOSZ, attributed the drop in output in June to a high base. Koji said the sector would remain a “driving force” for the economy in 2022 and put output value at around 5,500 billion forints (EUR 13.85bn). Gergely Suppan, Takarékbank’s chief analyst, said the construction sector was likely to expand by close to 7% this year, supported by a “mass” of orders for residential construction and renovation as well as demand for home energy upgrades.


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