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Construction sector contracts in June

Output of Hungary's construction sector fell by an annual 8.1 percent in June, contracting for the first time in more than a year, data released by the Central Statistical Office (KSH) on Monday show. Output of the buildings segment fell by 4.8 percent and civil engineering output dropped by 11.7 percent.

In absolute terms, construction sector output reached 579.1 billion forints (EUR 1.5bn) in June. The buildings segment accounted for 60 percent of the total.

In a month-on-month comparison, construction sector output slipped 5.2 percent, adjusted for seasonal and workday effects.

For the period January-June, construction sector output increased by 7.0 percent year-on-year, KSH said.

KSH noted that second-quarter producer prices in the construction sector increased by an annual 25.0 percent and by 7.6 percent quarter-on-quarter.

Laszlo Koji, who heads construction industry association EVOSZ, attributed the drop in output in June to a high base. Koji said the sector would remain a “driving force” for the economy in 2022 and put output value at around 5,500 billion forints (EUR 13.85bn).

Gergely Suppan, Takarekbank’s chief analyst, said the construction sector was likely to expand by close to 7 percent this year, supported by a “mass” of orders for residential construction and renovation as well as demand for home energy upgrades.

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