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.

The output of the electrical equipment segment, which comprised 11pc of manufacturing output, declined to 15.7pc.

The output of the computer, electronics, and optical equipment segment, which accounts for close to 10 percent of manufacturing, contracted 13.2 percent.

The output of the food, drinks, and tobacco segment, which made up 16 percent of the manufacturing sector’s output, edged down 0.2 percent.

Adjusted for the number of workdays — of which there were two fewer than in the base period — headline output fell 4.1pc.

In a month-on-month comparison, output slipped 0.5pc on a seasonally- and workday-adjusted basis.

For the period January-August, industrial output declined 3.8pc year-on-year.

Successful economy, the government says

Fidesz parliamentary group leader Máté Kocsis said on Monday that

Hungary’s economic prospects are “good.”

He said it was time for a new national conciliation to ensure that the proposed new measures would further strengthen the economy and people’s welfare.

Experience shows that the National Consultation will once again consume billions of forints. Fidesz will still only be able to appeal to its own voter base, which is only one-fifth of the citizens who vote. Moreover, the questions and answers that are being directed now suggest that it is possible to be trade neutral as a member of the EU. Details here.

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