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Seasonally adjusted Q1 figures showed 2.8% growth over the previous quarter. The total value of investments was HUF 681.7 billion (USD 3.65 billion) at current prices in January-March. The volume of machinery investments was up 2.7% to HUF 289.1 billion, while construction investments increased by 12.2% year on year to HUF 373.5 billion.
In a breakdown by sector, growth was by far the most dynamic in the transport, storage and communications sector, the third largest by investment volume. Growth in Q1 was 40.3%, driven by motorway and road building projects.
The two largest sectors, on the other hand, were largely stagnant – growth in manufacturing investments was just 2.1%, mirroring a similarly lackluster performance in the fourth quarter of last year, which nonetheless brought annual growth in manufacturing investments to over 15% last year. Modest growth in Q1 may be explained by a few larger projects carried out in the same period last year, the KSH said.
The largest sector, real estate, renting and business activities, showed a 3% decline in Q1, due to a slowdown in home building, according to the KSH. Investments in this segment were up 13% last year.
