Hungary’s Orbán Government Celebrates Success Amid Steepest Economic Decline
Hungary’s construction sector faced a significant decline in August, with output falling by 6.0% year-on-year according to data released by the Central Statistics Office (KSH). The buildings segment saw a 3.2% decrease in output, while civil engineering output dropped by 10.2%. Despite these challenges, construction sector output still reached HUF 614bn in August, with the buildings segment accounting for the majority of the total.
In comparison to the previous month, construction sector output decreased by 2.1% after adjusting for seasonal and workday effects. However, order stock saw an increase of 22.8% compared to the previous year, with civil engineering orders rising by an impressive 51.4%. New orders, on the other hand, fell by 19.6%, with the buildings segment experiencing a 27.1% drop and new civil engineering orders declining by 11.1%.
Looking at the year so far, construction sector output has seen a slight increase of 1.8% from the same period last year. Meanwhile, Hungary’s industrial sector also faced challenges in August, with output falling by 9.5% year-on-year. The automotive industry, a key manufacturing sector for Hungary, experienced a 12.4% decline in output, while the electrical equipment segment saw a 15.7% decrease.
Overall, Hungary’s economic sectors are experiencing difficulties, with both the construction and industrial sectors facing significant declines. It will be crucial for policymakers and businesses in Hungary to address these challenges and work towards sustainable growth in the coming months.
