Investments increased by 22% in the 3rd quarter of 2018
In the 3rd quarter of 2018 the volume of investments exceeded the previous year’s same period by 22%, on a rate that surpassed the increase of the 1st semester. The significant growth was due to capacity-enlarging investments of enterprises, to projects financed from funds of the 2014–2020 EU budget cycle as well as the persisting expansion in dwelling and other real estate investments. In the first three quarters of 2018 investments grew by 17% compared to the previous year’s high base.
In the 3rd quarter of 2018, seasonally adjusted:
The seasonally adjusted volume of investments exceeded the previous quarter’s by 5.1%, and the average of 2015’s quarters by 32%.
In the 3rd quarter of 2018 compared to the same period of the previous year:
The volume of investment activity rose by 22%, within it construction representing 58% of the total value of investments increased by 25%, machinery and equipment – representing approximately four-tenths of the total value of investments – grew by 19%.
The volume of developments grew by 13% in the case of enterprises employing at least 50 persons, - these realise more than half of the investments – and by 35% in the case of budgetary units, these accounting for 15% of the investment performance.
Investment activity increased in almost every sector of the national economy. Out of the sections carrying the largest weight, the highest investment volume growth (42%) was recorded in transportation and storage, mainly as a result of public road reconstructions, and the continuing road, motorway and railway constructions. Enterprises engaged in transportation significantly increased their investments as well.
The investment volume of real estate activities, representing about 16% of the investment outlay, rose firmly (by 18%): beside the continuing expansion in dwelling constructions an outstandingly growing investment in business facilities (office buildings, warehouses, etc.) occurred, too.
Developments in manufacturing, realising one quarter of investments in the national economy grew modestly (by 3.2%). The volume of developments grew to the highest extent in the area of manufacture of electrical equipment, as a result of the high international demand for the subsection’s products. Outstanding developments were conducted in the manufacture of basic metals, manufacture of fabricated metal products, except machinery and equipment, and in the field of manufacture of computer, electronic and optical products. Investments decreased in several sub-sections such as the manufacture of machinery and equipment n.e.c., the manufacture of chemicals and chemical products. Investments in the manufacture of transport equipment – which represented one quarter of the manufacturing developments in the current period – were also reduced.
Investment performance continued to grow in the section of wholesale and retail trade, and repair of motor vehicles and motorcycles by 15%; enterprises engaged in the non-specialised sale of food, beverage and tobacco and in the sale of motor vehicles increased their investments above average.
Central government budget related investments continued to play a key role in the 3rd quarter as well in the growth of investments in the national economy as a whole. In the mainly publicly financed areas investments typically grew at a rate above average, primarily as a result of developments financed from EU funds. Investments volume exceeded the previous year’s level in the fields of public administration, defence and compulsory social security mostly due to law enforcement, national defence and central government bodies related investments by 66%, in human health and social work activities – mostly due to developments in in-patient care related investments – by 30%. In arts, entertainment and recreation the 59% growth was still due to sports and culture related large-scale investments. At the same time in education – mainly due to completion of some high volume projects in higher education – investments decreased by 2.1%.
Volume of investments in certain low-weight sections also grew on a scale above the national economy’s average. In the strong expansion of developments in the energy industry (68%) investments in renewable energy sources played a part; in the field of administrative and support service activities the above average increase (49%) is related to the expansion in machinery and motor vehicles acquisition of leasing companies. In the field of accommodation and food service activities hotel constructions and renovations contributed once again – similarly to the previous periods – to the outstanding growth (26%). Business units in construction increased their tangible-asset developments by 25% as a result of the favourable economic trend.
Investment outlay of national economy
| Section | Quarter 3 of 2018 | Quarters 1–3 of 2018 | ||
|---|---|---|---|---|
| at current prices,million HUF | volume index, corresponding period of previous year=100.0% | at current prices,million HUF | volume index, corresponding period of previous year=100.0% | |
| Total | 2 208 175 | 122.1 | 5 321 370 | 116.9 |
| Of which*: | ||||
| agriculture, forestry and fishing | 85 921 | 110.6 | 242 417 | 102.6 |
| manufacturing | 551 371 | 103.2 | 1 388 897 | 101.2 |
| wholesale and retail trade, repair of motor vehicles and motorcycles | 116 174 | 114.9 | 308 969 | 110.2 |
| transportation and storage | 413 274 | 141.8 | 834 482 | 127.6 |
| real estate activities | 356 215 | 118.4 | 870 408 | 113.8 |
| public administration and defence; compulsory social security | 146 026 | 165.8 | 359 943 | 172.0 |
* Data of the six largest sections with the highest investment performance according to the ranking of the NACE Rev.2 nomenclature.