Hungarian construction sector rebounds in August after three-month slump

The Central Statistical Office reported that Hungary's construction sector experienced a notable surge in August, reversing a three-month downturn and exceeding both the same month last year and July's figures. Production of building construction dipped modestly year-on-year, whereas work on other structures more than doubled, thanks to substantial expansions in road, railway and utility sub-sectors. The most significant sectoral gain came from special trades, which fell short of the previous year, while overall new contract volumes dropped, particularly for building projects. Despite the impressive month-end rise, analysts note that the uplift is largely tied to a few large state-funded infrastructure projects and that the sector is unlikely to sustain this pace as stimulus programs wind down and broader European economic weakness persists.