Output of Hungary’s construction sector rose by an annual 8 percent in January, the Central Statistical Office (KSH) said. The rise followed a 2.2% drop, the first annual drop in about two years, in December. Based on seasonally and working day adjusted data, the sector’s output rose by 6.5% in January from December after two months of monthly drops. In absolute terms, at current prices, output of the sector reached 88.9 billion forints (EUR 292m) in January.
ING Bank senior analyst András Balatoni, noting the portfolio of new orders dropped significantly, concluded that in the short term the construction sector could even shrink, while growth in the medium term will be slower than last year. In the past three years central projects had helped the sector, especially in 2014, but these schemes will gradually phase out.
K&H Bank senior analyst Dávid Németh said public road and railway construction projects would not contribute to the sector as much as last year, and there was “no spectacular boom”. Németh said he expected a 5-6 % construction growth in 2015, as opposed to last year’s 14.2%.
László Koji, deputy head of the Hungarian Construction Federation (ÉVOSZ), said that the total contract portfolio was 20.6% down from last year, which he attributed to “restrained” public orders. ÉVOSZ predicts a 5% rise this year in a best-case scenario, Koji added.
via ksh.hu and hungarymatters.hu photo: veol.hu