Published on: 28 November 2019

Investments increased by 15% in the 3rd quarter of 2019

The strong growth in the volume of investments continued in the third quarter of 2019, the volume of investments in the current quarter exceeded the high base of the same period of 2018 by 15%. The expansion of investments was due to enterprises – mainly those in manufacturing – developments conducted by other economic entities did not contribute in merit to the growth.

In the 3rd quarter of 2019, seasonally adjusted:

The seasonally adjusted volume of investments exceeded the previous quarter’s by 3.1%, the average of the quarters of 2015 by 57%.

In the 3rd quarter of 2019 compared to the same period of the previous year:

The volume of investment activity rose by 15%, within it construction investments representing approximately six-tenth of the total volume of investments rose by 16%, investments in machinery and equipment representing about four-tenth of the total value of investments increased at a slightly slower pace by 14%. In the growth of investments in machinery and equipment acquisitions of domestically produced assets and well as of those coming from import played a role.

Investment performance in the case of enterprises employing at least 50 people and realising approximately six-tenth of investments increased at an outstanding 29% rate similarly to the previous periods; in the case of budgetary units investments basically stagnated (+0.2%) compared to the previous year. In the case of enterprises investments of large companies increased outstandingly. In the case of the government, investments conducted by central public administration institutions decreased, the investments of municipalities increased.

Investment activity varied among the different fields of the national economy. Out of the most significant sections, developments in manufacturing – representing nearly one third of investments – grew outstandingly (29%) despite of the decrease in the volume of more than the half of the subsections. The growth was primarily due to investments in the fields of manufacture of chemicals and chemical products, manufacture of electrical equipment and in the rubber- plastic- and building material industries. In the increase of developments green field investments as well as expansions of existing capacities played a role. Significant investment activity characterised enterprises with foreign capital as well.

The growth of investments of 17%, in transportation and storage, considered the second largest investor, lessened compared to the previous quarters. Its volume increased once again mainly as a result of ongoing road, motor- and railway constructions, at the same time enterprises operating in warehousing and storage and cargo handling conducted serious investment activities, too.

Investment performance of real estate activities, considered the third largest investor, representing about 17% of total investments, also grew significantly (by 23%), the continuing increase of investments in business facilities for rent (office buildings, warehouses, etc.) overtook the moderate growth in dwelling constructions.

In the 32% increase in the field of arts, entertainment and recreation sport related high-scale projects played an important role. In agriculture mainly due to construction investments of enterprises with higher employee-numbers investment volume increased by 15%.

Out of some sections representing a relatively small weight, the volume of investments grew on a scale above the national economy’s average. In the section of water supply and waste management investments grew significantly (61%) due to water quality improvement, sewage water treatment and waste management projects, financed partially from EU funds. Enterprises in construction increased their tangible-asset acquisitions by 34% as a result of the favourable economic trends within the section. Developments of financial and insurance activities grew by 32% partially as a result of bank-branch buildings’ reconstructions.

Investment performance of public administration, defence and compulsory social security decreased by 20% compared to the base period. The decrease was mainly the result of the smaller volume of military- and police asset acquisitions. In the section of wholesale and retail trade, and repair of motor vehicles and motorcycles investment performance moderately decreased (by 1.4%), mainly as a result of the smaller investment spending of international chains engaged in non-specialised sale of food in the current period.

The volume of investments did not reach the value of the base period in several relatively low weight representing sections of the national economy: investments decreased in the energy industry by 20%, in information and communication by 12%, in education by 11%, in professional, scientific and technical activities by 6.1%, in mining and quarrying by 4.8% and in human health and social work activities by 3.1%.

Investment outlay of national economy

Section Quarter 3 of 2019 Quarters 1 - 3 of 2019
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%
Total2 684 431 114.8 6 803 488 118.0
Of which*:
manufacturing740 599128.61 883 437129.4
transportation and storage 496 812117.11 117 501120.0
real estate activities452 298122.61 110 543116.4
public administration and defence; compulsory social security 149 27480.3400 68797.0
wholesale and retail trade, repair of motor vehicles and motorcycles119 22498.6338 849103.5
arts, entertainment and recreation112 797131.7272 647136.9

*Data of the six largest weight carrying sections, based on investment performance of the 3rd quarter of 2019