Output of Hungaryʼs construction sector climbed 27.3% year-on-year in November, according to raw data released by the Central Statistical Office (KSH) on Tuesday. Output grew in both main groups of construction: in the construction of buildings by 17.8%, and in civil engineering works by 40.2%.
In the construction of buildings, the increase was due to industrial, commercial and residential projects; in civil engineering, road, railway and utility construction continued to generate the growth.
The volume of new contracts increased by 30.4%; within this, the volume of new contracts concluded for buildings rose by 14.0%, while new civil engineering contracts increased by 45.6% year-on-year. In November, contracts of high value were signed for industrial buildings, as well as for road and railway construction.
Based on seasonally and working day-adjusted indices, construction output in November rose by 4.4% compared to the previous month.
The volume of contracts at construction enterprises as of the end of November was up 37.9% year-on-year. The stock of contracts decreased by 4.0% for the construction of buildings, but increased by 51.6% for civil engineering works, compared to November 2017.
- In absolute term
In absolute terms, the value of construction output stood at HUF 369.7 billion in November, and totaled almost HUF 2.942 trillion in January-November 2018.
- Construction output
Construction output data for December, and for the full year 2018, will be published on February 13.
- Construction orders of HUF 25 tln until 2023
The construction sector has a HUF 25 trillion order stock stretching until 2023, with around HUF 15 tln coming from state-funded infrastructure projects.
- To deal with construction sector
To deal with construction sector capacity constraints, the government is providing HUF 36 bln of funding between 2018 and 2020 for modernizing SMEs in the sector, of which HUF 16 bln was distributed last year, he added.
László György said the government estimates construction sector output grew by 25% annually last year and noted that there could be more than HUF 3 tln of investments in Hungary in the next three years, helping growth.
Original article: https://bbj.hu/economy/construction-sector-output-jumps-273-in-november_160110