Hungary Construction Output Growth Slows

Hungary’s construction output fell by 10.7% year-on-year in May 2026, following a 2.6% rise in the previous month. This marked the weakest reading since January, as production in civil engineering works plunged 21.9% from a 13.9% increase, driven mainly by a 46.2% contraction in road and railway construction, which reduced the overall performance of the civil engineering segment by 38 percentage points. Meanwhile, output in building construction contracted at a slower pace at 4.2%, easing from a 6.2% decline in April, as a 12.4% increase in specialised construction activities, the industry's largest segment, partially offset a 19.1% drop in building construction and a 34.9% slump in civil engineering output. On a seasonally adjusted monthly basis, construction activity dropped by 6.5% in May, following a 6.9% increase in the preceding period. For the Janury–May period, the total volume of construction fell by 4.3% compared to the same period a year earlier.

Hungary’s construction output rose by 2.6% year-on-year in April 2026, easing from a 3.9% increase in the previous month. Production in building constructions plunged 6.2% from a 4.4% gain, weighed down by a decline in building activity. Among the divisions of construction, output in the construction of buildings was 11.6% lower than a year earlier, while output in civil engineering rose by 19.2%, and output in specialised construction activities, which have the largest weight within the construction sector, increased by 4.4%. Meanwhile, output grew for civil engineering works, driven mainly by a 47.6% increase in the volume of road and railway construction, contributing almost 30 percentage points to the division’s performance. For the January–April period, the total volume of construction output fell by 2.2% compared to the same period a year earlier.

Hungary’s construction output rose by 3.9% year-on-year in March 2026, rebounding from a downwardly revised 1.1% decline in the previous month. Output in civil engineering works climbed by 3.0%, recovering from a 7.7% drop in February, mainly driven by a 7.3% increase in specialised construction activities. Meanwhile, building constructions also rose by 4.4% from 1.7%. On a seasonally adjusted monthly basis, construction output grew by 0.5% in March. For the first quarter of 2026, the total volume of construction output declined by 4.2% compared to the same period a year earlier, as construction of buildings and civil engineering output fell by 1.6% and 9.4%, respectively.