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Construction output up by 3.3 percent in January

Output growth of Hungary's construction sector slowed to an annual 3.3 percent in January, decelerating on a decline in the building segment, the Central Statistical Office (KSH) said on Wednesday.

Construction output has grown in the double digits since the spring of 2021, KSH said.

Output of the building segment edged down by 0.4 percent, while civil engineering output climbed by 12.9 percent.

In absolute terms, construction sector output reached 291.4 billion forints (EUR 781.7m) in January. The building segment accounted for 65 percent of the total.

Month on month, the output fell by 6.3 percent, adjusted for seasonal and workday effects.

Order stock in the construction sector was 6.3 percent higher at the end of January than twelve months earlier. Buildings segment orders were down by 5.1 percent but civil engineering orders rose by 15.3 percent.

New orders climbed 11.7 percent during the period, as new orders in the buildings segment jumped by 49.7 percent but new civil engineering orders plunged by 39.8 percent.

Takarekbank senior analyst Andras Horvath said full-year growth in the sector could climb a little higher than 10 percent, but said the consequences of the war, supply chain interruptions and the labour market squeeze presented “significant uncertainty”.

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