Hungary’s construction output in May down 20.1 pc yr/yr

Construction output in Hungary fell by an annual 20.1 percent in May, the Central Statistical Office (KSH) said on Wednesday.

Compared with April, output dropped by 20.3 percent, based on seasonally and working day-adjusted data.

Building construction fell by 24 percent compared with May last year.

In the first five months of the year, construction output was 5.6 percent lower than the same period last year.

Commenting on the data, Anita Boros, state secretary at the Ministry of Innovation and Technology, said the novel coronavirus epidemic had left its mark on the sector in May.

The ministry expects that the sector will rebound from September, however, she said.

Analysts said that while the epidemic had clearly affected the sector in May, the long-term consequences were not yet clear and the next few months, with the easing of restrictions, would determine the sector’s performance for the full year.

Takarekbank analyst András Horváth said the sector rallied well in March and April, the first two months of the epidemic. The sector’s performance in June will be key to determining how well it rebounded from the setback in May, he said. The stock of orders gives reason to hope for a V-shaped recovery, he said.

Meanwhile, construction in the business and industry branch were unaffected and are expected to remain so if a protracted crisis can be avoided, he said.