Hungary construction sector declines for third month as industry grows

Data from the Hungarian Central Statistical Office (KSH) reveals a divergent economic landscape for July. The construction sector has experienced a continuous decline for three consecutive months. In July, construction production volume fell by 12.2 percent compared to the previous year, when adjusted for working days. This downturn was driven by significant decreases in the construction of other structures, including a 52.2 percent drop in utility construction and a 26.2 percent decline in road and railway construction.

In contrast, overall industrial production in Hungary showed growth. July industrial production volume increased by 4.7 percent compared to the same period last year. This growth was primarily fueled by the automotive manufacturing sector and the production of computers, electronics, and optical products. While the construction sector faces challenges due to declining state and corporate orders, the manufacturing sector has seen a boost in export volumes, which rose by 6.3 percent year-on-year.