Orbán government celebrates success, but Hungary faces its steepest economic decline of the year

On an annual basis, one of the most important sectors for the Hungarian economy recorded its biggest decline so far this year in August. The construction sector was not at its best either. Here are the facts, according to the State Statistics Office, on the economic decline: 

Hungary’s construction sector output falls 6.0pc in August

Data released by the Central Statistics Office (KSH) on Tuesday show that Hungary’s construction sector’s output fell 6.0pc year-on-year in August.

The output of the building segment slipped by 3.2 pc, and civil engineering output dropped by 10.2 pc.

In August, the construction sector’s output reached HUF 614bn, with the building segment accounting for 63% of the total.

In a month-on-month comparison, construction sector output edged down 2.1pc, adjusted for seasonal and workday effects.

Order stock was 22.8pc higher at the end of August than twelve months earlier. Buildings segment orders fell 5.8pc, but civil engineering orders rose 51.4pc.

New orders fell 19.6 percent during the period. New orders in the buildings segment dropped 27.1 percent, and new civil engineering orders declined 11.1 percent.

For January-August, construction sector output rose 1.8pc from the same period a year earlier.

Hungary’s industrial output falls 9.5pc in August

A detailed reading of data released by the Central Statistics Office (KSH) on Tuesday shows that Hungary’s industrial sector’s output fell 9.5pc in August.

The detailed data show that the output of the automotive industry, Hungary’s most significant manufacturing sector, fell 12.4 percent year-on-year in August. The segment accounted for 23pc of manufacturing output during the month.