Odd production from the construction industry - adaptation is timely

This year construction industry produced a mixed certificate. In September the volume of production of the sector was by 1.6 per cent higher than a year ago. Of the subsectors, increase was 3.3 per cent for construction of buildings but a 0.5 per cent fall has occurred for other structures including infrastructural projects. In the first nine months of the year the dynamics was 4.8 per cent. Due to the more uncertain environment, the volume of orders has diminished.

“The increase in September contributed to the fact that in the first nine months of the year the volume of production was in the positive and, according to the raw data, it was by 4.8 per cent higher than a year ago. However, performance was suppressed compared to the previous period, e.g. the most months of 2021 when even dynamics above 10 or even 20 per cent occurred” - evaluated the new data Tamás Vida, CEO of KÉSZ Group. He added: According to the long-term, fixed-based data with seasonal and working day adjustments, in September the volume of production was 59.0 per cent higher and in the first nine months of the year it was 61.1 per cent higher than the 2015 average.

“The portfolio of contracts and orders determining the future performance of the sector, i.e. the progress of building works, projects and construction showed an unfavorable trend. The volume of new contracts concluded in September has considerably diminished by 20.9 per cent and at the end of the third quarter the whole volume fell by 8.2 per cent on an annual basis. It is attributable, among others, to the more and more uncertain economic environment and prospects. Acceleration of inflation in the construction industry is visible the best through increase of production prices: which were by almost 24 per cent higher in the first nine months of the year” - he added. It was supplemented by the increase - among others - in the basic and raw materials and energy prices and the more and more expensive financing due to higher interests.

However, Tamás Vida said that the energy crisis also has a favorable effect on the future because some kind of an adaptation has started in the construction industry as well. He said: It practically means that although the energy saving aspects were important also in the previous years, they will be even more important in the future. So the environmentally-friendly solutions preferring sustainability receive an even greater role in all new or newly started construction projects.