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Output of Hungary’s construction sector grew by an annual 32.9% in July, the Central Statistical Office (KSH) sais. Output of the buildings segment was up 32.2%, lifted by construction of residential, cultural and industrial buildings, KSH said. Civil engineering output increased by 34.1%, supported by road, utilities and railway projects, it added. In a month-on-month comparison, construction output increased by 9.6%, adjusted for seasonal and working-day effects.
Analyst András Horváth of Takarékbank told MTI that construction sector performance could remain inconsistent in the coming months due to varying utilisation of capacities, even though the momentum seen early in the year returned in July. Reasons for this include the shortage of qualified workforce, the phasing out of the preferential VAT rate on home construction and other uncertainties, especially in the residential and office building segments, he said. State, infrastructure and other industrial investments, however, will remain drivers of growth in the sector and could maintain the outstanding momentum, he added. Horváth predicted full-year construction industry output growth of around 30% in 2019.