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Hungary's Industrial Output Increases Despite Construction Sector Suffered Setback In August

Tamás Székely 2015.10.15.

Hungary’s industrial output grew by an annual 6.2% in August, the Central Statistical Office (KSH) said in a second reading of data, confirming its first estimate. The index adjusted for the number of workdays also increased by 6.2%. In a month-onmonth comparison, industrial output fell by 2%, according to seasonally and workday-adjusted data. In the first eight months of 2015, industrial output was up 6.6% from a year earlier.

Hungarian industry performed exceptionally well in August in spite of the usual summer-holiday lull and factory shutdowns, Béla Glattfelder, state secretary at the economy ministry, told public television’s M1 news channel. He said that output growth of above 6% put Hungary in Europe’s top league. A major expansion of exports aided industry and thanks to this Hungary is likely to enjoy a record foreign trade surplus this year.

The Central Statistical Office also said that the output of Hungary’s construction sector contracted by an annual 6.1% in August. The decline followed a 0.2% increase in the preceding month. In absolute terms, construction sector output reached 180.2 billion forints (EUR 581m). In a month-on-month comparison, the sector’s output fell by 3.6% based on seasonally and working-day adjusted data. Order stock of construction sector companies was down 48.0% at the end of August compared to twelve months earlier. New orders signed during the month fell 10.6%. In January-August, construction output rose by 4.7% compared to the same period a year earlier.

Analysts interviewed by news agency MTI said they do not expect to see a significant improvement in the coming period because of the decline in the order stock and particularly in the volume of new orders in the construction sector. Dávid Németh of K&H Bank said the decline in output was expected as state infrastructure developments co-funded by the European Union run out, but added that the drop of orders dampen prospects. László Balogh of real estate portal Ingatlan.com said the data show that even though the housing market has started to pick up, new home construction has not yet taken off, adding that the outlook is not promising either as the volume of new contracts for building construction also showed a decline in August.

via ksh.hu and hungarymatters.hu