Hugarian April construction output falls

Hugarian April construction output falls
Published: 16 June 2011

Hungarian construction output decreased by 6.0% MoM in April, following a 3.2% decline in March, the Central Statistics Office (KSH) reported. The orders figures are still causing concern and are much worse than forecasts made at the start of 2011. The volume of output is at levels last seen 12 years ago, without any sign of recovery. The sector has been in recession for the sixth year in a row.

Last year construction activity was 10.1% lower compared to the previous year. Output from both buildings and civil engineering works declined (-5.2% and -15.2% respectively). The building sector was largely influenced by a considerable fall in the construction of residential housing (-35%). Civil engineering works dropped mainly as a result of a fall in output of around a third from contractors dealing with road construction.

Last year cement demand fell 21.9 per cent to 2.517Mt from 3.221Mt in 2009. For this year, cement consumption is expected to remain at 2010 levels.