Construction sector decline in Hungary and UK

The construction sectors in Hungary and the United Kingdom have faced declining orders and output. In Hungary, June 2026 data showed construction output volume was 1.2% lower than the previous year, with building construction declining by 5.5% despite a 5.6% increase in civil engineering. New contract volumes in Hungary fell by 41.9% year-on-year. In the United Kingdom, new orders dropped by 12% in the second quarter of 2026, a £1.2bn decrease driven by a reduction in private commercial work.

By September 2026, the Hungarian construction industry continued to struggle with weak demand. The number of construction companies is expected to decline throughout the year, though the rate of closures has slowed. László Koji, president of ÉVOSZ, stated that medium and large-scale contractors are particularly impacted by the shrinking volume of projects, which is causing the decline of professional workshops. Experts suggest recovery depends on predictable orders and long-term planning, potentially driven by EU funds, state investments, and energy modernization.