Good news came from the Hungarian economy – UPDATED

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Output of Hungary’s industrial sector rose by an annual 4.5 percent in February, around half the pace in January, the Central Statistical Office (KSH) said in a detailed reading of data on Wednesday. Output of Hungary’s construction sector rose by an annual 42.3 percent in February, the highest pace in almost three years, the Central Statistical Office (KSH) said on Wednesday.

The automotive segment, which accounted for 25 percent of the manufacturing sector in February, slipped by an annual 0.8 percent as production shutdowns and scale-backs because of the global semiconductor shortage recently hit the sector. The output of the computer, electronics and optical equipment segment, accounting for 11 percent of manufacturing, increased by an annual 2.0 percent in February.

Output of the food, drinks and tobacco segment, which made up another 11 percent of manufacturing sector output, climbed 10.0 percent. Adjusted for the number of workdays, headline output rose by 4.5 percent.

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UPDATE (14.57 GMT)

Output of Hungary’s construction sector rose by an annual 42.3 percent in February, the highest pace in almost three years, the Central Statistical Office (KSH) said on Wednesday. Output of the building segment climbed 56.2 percent, while civil engineering output was up by 20.0 percent.

In absolute terms, construction sector output was 397.9 billion forints (EUR 1.1bn) in February.

In a month-on-month comparison, construction sector output was up 13.3 percent, adjusted for seasonal and workday effects. Order stock in the construction sector was 19.2 percent higher at the end of February than twelve months earlier. Buildings segment orders were up by 15.6 percent and civil engineering orders rose by 21.7 percent. New orders jumped by 92.7 percent during the period, as new orders in the buildings segment climbed 65.3 percent and new civil engineering orders were up by 128.2 percent.

Takarékbank chief analyst András Horváth said state subsidies for home purchases and renovation may be a driver behind the strong demand at present. He added that general contractors’ projections early in the year for annual price increases of around 10 percent have been bumped up as high as 25 percent or more.