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Hungary's construction sector boom

D&T
October 17, 2017

According to end of summer figures by the Central Statistical Office (KSH), the volume of construction output in Hungary was 36.8% higher in August 2017 than the low base a year earlier. construction output grew by 9.8% in August compared to the previous month.

In August 2017, compared to the same month of the previous year:

The volume of output rose in both main groups of constructions: by 46.8% in the construction of buildings and by 24.1% in that of civil engineering works. Growth in the construction of buildings was primarily the result of the construction of industrial and warehouse buildings and, to a lesser extent, sports facilities as well as educational and residential buildings in August as well. In case of civil engineering works, the production grew, in addition to the low base, as a result of road, railway and utility construction works.

Out of the divisions of construction, output increased by 46.5% in the division of the construction of buildings, by 28.2% in civil engineering and by 35.9% in specialised construction activities.

The volume of new contracts increased by 46.0% compared to the same period of the previous year, within this, the volume of new contracts concluded grew by 95.4% for the construction of buildings and by 18.9% for the construction of civil engineering works. New contracts were concluded mainly for the construction of industrial buildings and, to a lesser extent, housing and hotel buildings. Growth in civil engineering works was the result of contracts signed for railway development as well as utility and road construction.

At the end of August, the month-end volume of the stock of contracts of construction enterprises was 89.7% higher than the previous year's low base. The volume of the stock of contracts was 22.2% higher for the construction of buildings and 134.6% higher for the construction of civil engineering works than a year earlier.

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