Hungary investment volume falls 7.7pc yr/yr in Q1

Quarter-on-quarter investment volume fell a seasonally-adjusted 1.1pc in Q1 after a 0.1pc rise in Q4. Construction-type investments were down 5.1pc yr/yr in Q1 and investment in machinery and equipment fell 9.9pc. Investments in the manufacturing sector were down 6.8pc mainly because of a decline in investment in tyre manufacturing. Big projects in the segment were completed in the base period, and cutbacks related to the auto industry crisis were made in Q1. Investment in transport and storage fell 21.1pc yr/yr in Q1, accelerating from a 6pc drop in Q4. The category includes road construction, for which investment volume was flat. The information and communications sector registered a marked 22.9pc yr/yr rise in investment volume after a 5.2 pc fall in Q4 fuelled by network development and IT upgrades. Real estate businesses, including home building companies, raised their investment volume by 3.5pc yr/yr in Q1, after declines in the previous six months. Tourism-related investments in accommodation and catering services fell 21.7pc yr/yr in Q1, albeit from a high base, after climbing 10.9pc in Q4. A high base also explains the 18.2pc yr/yr decrease in agricultural investment in Q1. Investments in the public administration sector fell 24pc yr/yr in Q1 as budget cuts were made. Investments in the education and healthcare sector fell, 11.8pc yr/yr and 10.2pc, respectively, continuing a drop of more than two years.