Hungary’s construction industry output has showed a decline in every month since July 2009.

The breakdown of data show that the construction of buildings was largely to blame for the decline, although the 21% yr/yr plummet observed in this group in January moderated to -14.2% in Feb. At civil engineering the production volume dropped 2.3%, against an increase of 1.2% in the pervious month.

In monthly terms, output rose by 6.0% yr/yr in February, according to data adjusted seasonally and by working days, following a drop of 11% in Jan (revised downward from -12.3%.

The KSH noted that the production in the sector in both Jan and Feb amounts to about 60% of the output in an average month.

If we take a look at orders figures, especially new orders, we may see the light flickering at the end of the tunnel, though. It may even be more than just flickering.

The stock of orders of enterprises in the construction industry was up 13.7% yr/yr in Feb, further down from a 22.3% growth in Jan and 23.5% in Dec.

The stock of orders at buildings grew by 26.9% (vs. +25.9% in Jan), but the growth rate at civil engineering decelerated further to 4.5% from 18.9% in Jan and 30.5% in Dec.

The stock of new orders skyrocketed by 38% yr/yr in Feb, following an increase of 21.6% in Jan. The stock of new orders at buildings picked up by 15.5% yr/yr, following a 3.4% drop in Jan.
At civil engineering the stock of new orders shot up by 61.1% yr/yr in the second month of the year vs. an already massive growth of 43.34% in Jan."

Source: Portfolio Online Financial Journal