Investment into machinery, equipment and vehicles fell 15.5pc yr/yr in Q4 and was down 14.0pc in 2009 from 2008. Construction-type investment fell less, by 7.4pc yr/yr in the fourth quarter and by 4pc in the full year.

    Business sector investment volume fell well below the average, by 16.7pc yr/yr in Q4 and by 12.4pc yr/yr in 2009 after a 3.6pc decline in 2008.

    Investments in the budget-funded area fell, in contrast, by 0.9pc yr/yr in Q4, and by 2.6pc in 2009 after a steep 21.7pc contraction in 2008. After similar-size decline in the first quarter of 2009, budget-sector investments were up from a low base both in Q2 and Q3 last year.

    The 2009 decline came after a 1.9pc drop in 2008, no change in 2007 and a 1.2pc fall in 2006. Investment volume in Hungary rose in each of the preceding ten years.

    Investment volume in the manufacturing sector dropped more than the average, by 16.8pc yr/yr in Q4, and by 15.2pc in 2009. The sector has experienced yr/yr declines since the beginning of 2008, and the decreases widened into double-digit paces similar to Q4 since the second quarter of 2009.

    Investment still grew in some parts of the manufacturing sector, such as pharmaceuticals and vehicle manufacturing, the latter seeing some significant developments in Q4, KSH noted.

    The big drop in home construction in the second half of last year continued to push down investments in the property business sector, by 13.7pc yr/yr in Q4 and by 5.4pc in 2009.

    The financial sector suffered one of the steepest falls, of 42.9pc in Q4 and 38.8pc for the full year, and similar-size drops were registered in the field of tourism-related investments.

    Investment volume rose, in contrast, in the transport and storage branches, by 13.8pc yr/yr in Q4 and by 8.3pc in 2009, reflecting mainly road and motorway construction, and rail and underground projects.

    Investment was up in agriculture, by 23.7pc in Q4 and by 7pc for the full year, which KSH attributed to (state and EU) support to machinery investments in the sector.

    Investment in education rose a sharp 42.3pc in Q4 and 13.3pc in 2009 from a low base due to reconstruction and expansion programmes.

    A Q4 increase of 6.4pc and a full year rise of 8.1pc in the energy sector mainly reflected machninery investments in the power generating segment, KSH said.