Hungary’s construction sector showed mixed signals in February, with output edging down slightly year-on-year but rebounding on a monthly basis, according to data released by the Central Statistical Office (KSH).
Construction output volume fell by 0.4% compared to February 2025, based on both raw and working day-adjusted data. At the same time, seasonally and working day-adjusted figures show the sector expanded by 4.9% from January, suggesting some short-term momentum.
The divergence within the sector remained pronounced. Output in building construction rose by 2.2% year-on-year, while civil engineering activity declined by 6.3%. The latter was shaped by contrasting trends: road and railway construction surged by 37.6%, while utility projects dropped sharply by 41.6%.
At a more granular level, the construction of buildings increased by 15% year-on-year, while civil engineering output slipped by 2.4%. Specialized construction activities, which carry the largest weight in the sector, declined by 9.3%.
Forward-looking indicators, however, point to continued weakness. The volume of new contracts signed in February plunged by 44.8% compared to a year earlier. Within this, contracts for building construction fell by 38.7%, while those for civil engineering projects dropped by 51.5%.
Despite the sharp fall in new orders, the total stock of contracts at the end of February was 9.5% higher than a year earlier. The volume of building-related contracts edged down by 0.9%, while civil engineering contracts increased by 14.4%, indicating that previously secured projects may continue to support activity in the near term.
Looking at the broader trend, construction output in the first two months of 2026 was 5.7% lower than in the same period last year, underscoring ongoing challenges in the sector.
