Output of Hungary’s construction sector climbed by an annual 26.3% in May, data released by the Central Statistical Office (KSH) show. Output of the buildings segment was up 27.0%, lifted by construction of factories and warehouses, KSH said. For the period January-May, construction sector output was up 40.4% year on year.
László György, a state secretary at the innovation and technology ministry, told news channel M1 that the construction industry had been growing for three consecutive years, with productivity reaching 23% in 2018. The sector is expected to receive orders to the tune of 25 billion forints between 2018 and 2023, he said, adding that facing that work load would require a 10 to 11% annual growth.
Commenting on the data, analyst Gergely Suppan of Takarékbank said unseasonably cold and wet weather and a higher base could both have played a part in the May slowdown in output growth. Suppan said he expected about 25,000 new homes to be completed this year, forecasting full-year output growth of around 30% in the sector.