January was the seventh month in a row when Hungary’s construction industry production dropped in annual terms.

The breakdown of data show that it buildings were solely to blame for the decline, as the KSH observed a 21% yr/yr plummet in this group, while at civil engineering the production volume rose 1.2%.

In monthly terms, output dipped by 12.3% in January, according to data adjusted seasonally and by working days, after a rise of 6.6% in Dec.

The KSH noted that the production in the sector in January amounts to about 60% of the output in an average month. It also said that the contraction in the first month of the year was also attributable to the weather, since there was more precipitation in January and the average temperature was also 0.8 degree Celsius colder.

A ray of hope?

If we take a look at orders figures, especially new orders, we may see the light flickering at the end of the tunnel, though.

The stock of orders of enterprises in the construction industry was up 22.3% yr/yr in Jan, slightly down from a 23.5% growth in Dec.

The stock of orders at buildings grew by 25.9% (vs. +16% in Dec), but the growth rate at civil engineering decelerated to 18.9% from +30.5% in Dec.

The stock of new orders rose by 21.6% yr/yr in Jan, following a decline of 16% in Dec. The stock of new orders at buildings dropped by 3.4% yr/yr vs. -1.8% in Dec.
At civil engineering the stock of new orders skyrocketed by 43.4% yr/yr in the first month of the year vs. a plummet of 26.3% in Dec last year."

Source: Portfolio Online Financial Journal