Hungary’s construction output climbs by over 30 pc in November – UPDATE

Output of Hungary’s construction sector rose by an annual 30.7 percent in November, the Central Statistical Office (KSH) said on Monday. The increase came from a low base.

Output of the building segment rose by 29.1 percent during the period. Output of the civil engineering segment climbed by 33.9 percent.

KSH said output of the building segment was driven by residential and school construction, as well as the construction of industrial buildings. In the civil engineering segment, construction of highways and railways supported the increase.

Output at current prices was up at 261 billion forints (EUR 844.5m) from 186.4 billion in November 2016.

Stock of orders was up 110.3 percent at the end of November from twelve months earlier, albeit from a low base.

Orders in the building segment were up by 30.2 percent and orders in the civil engineering segment increased by 161.6 percent.

New orders were up 11.7 percent, falling by 8.2 percent in the building segment and rising by 43.4 percent in the civil engineering segment.

Construction sector output was up 28.7 percent year-on-year in January-November.

Commenting on the data, Economy Minister Mihály Varga told public television that

government measures such as the home purchase subsidies (CSOK), state-funded investments and VAT cuts in the sector have contributed to an upswing in home construction.

The government is to launch a 20 billion forint equipment procurement programme in the construction sector to ease shortage of labour in SMEs with technology, he said.