Hungary's construction output in March was 11.5% higher than in the previous month, the Central Statistical Office (KSH) said on Thursday. Hungary’s construction industry has corrected the February slump and the rising trend remained unbroken, but the pre-crisis peaks are still some way off.
After the major increase in March following the February decrease, the construction output curve is as shown below.
The latest data reinforce the rising trend that has started after last spring’s low point, even if the past few months were zig-zagging. Growth is primarily driven by the construction of buildings, but as government spending picks up, the civil engineering segment is also expected to start growing again. The outlook for the construction industry is not bad as investments provide increasing demand, while higher EU transfers could bring further stimulus from the central budget.
Although new contracts showed a large increase compared to last March, this was mostly due to a very low base. The volume of new contracts concluded increased by 41.9%. Within that, the volume of new contracts for the construction of buildings rose by 53.4%, while the volume regarding civil engineering works grew 32.4% from the March 2020 base. In March 2021, contracts of high value were signed primarily for industrial buildings and railway development.
The total stock of contracts shows a somewhat more realistic picture. The volume of March end-of-month stock of contracts at construction enterprises was 13.2% higher than at the end of March 2020. Although the low base has also contributed to growth, data at current prices show that the value of contracts has also started to increase.
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