Analyst Korsnak: Construction Output Correction Likely in Coming Months

Bratislava, 8 June (TASR) - The record-breaking construction output figures for April 2026 won't be fully sustainable, as a correction in housing construction is expected in the months ahead due to the fact that the current strong growth figures don't quite tally with the housing starts statistics and new building permits, UniCredit Bank analyst Lubomir Korsnak has stated in a commentary on the construction output data for April that was published by the Statistics Office on Monday. "Following last year's signs of recovery, the housing market is once again being cooled down by higher interest rates and the negative impact of the fiscal consolidation package," stated Korsnak. "Despite this, we don't expect the housing market to experience a total collapse for now, as suggested by housing starts figures at the beginning of the year. However, the record growth in the spring isn't supported by economic fundamentals, which makes a correction more than likely," noted Korsnak, adding that the construction of flats could even return to modest year-on-year declines over the summer. During these months, according to Korsnak, infrastructure construction will be gradually peaking while losing its momentum during the year due to the upcoming finalisation of projects under the Recovery Plan. "Although some of the projects that are coming to an end will be replaced by new projects financed from EU funds, more pronounced short-term declines in output could be seen during the transition phase due to capacity relocation," stressed Korsnak, adding that positive effects from the launch of new public projects may be partly dampened or delayed by chronic problems in the construction of public infrastructure. As reported by the Statistics Office earlier on Monday, Slovakia's construction output reached nearly €718 million in April 2026, up 13.2 percent year-on-year (y-o-y) in fixed prices, making it the second consecutive month above the €700-million threshold. This was the best April for the past 18 years in terms of both volume and the pace of growth. Seasonally adjusted, construction output fell by 6.7 percent when compared to March 2026. jrg/df