Good news for home buyers – price increases might slow down in Hungary

In October, the ratio between companies reporting increasing and decreasing production was 24% to 9%, while in September, this ratio was 24% to 5%. In construction, shortage of labour seems to be the main obstacle to production growth.

Assessment of the stock of orders

Compared to the decline in September, assessment of the stock of orders slightly improved, and it got close to its peak in August, based on seasonally adjusted data. Seasonally unadjusted data also suggests a slight improvement: 31% of responding companies reported high stock of orders and 13% observed a lower stock of orders.

Employment expectations

Seasonally adjusted data suggests that in October, employment expectations strengthened significantly in construction compared to September. However, raw data shows a negative change. Within the next three months, 19 % of responding companies plan staff reinforcement and only 7% plan downsizing. In September, this ratio was 24% to 5%. Employment expectations improved in structural engineering whereas expectations worsened in civil engineering. There is a significant improvement compared to last year’s data, when only 7% of responding companies reported to plan staff reinforcement and 19% reported to plan downsizing.

The responding construction companies were somewhat pessimistic regarding the assessment of the Hungarian economy’s short-term prospects, and this index reached its lowest point in six months.

Source: www.napi.hu