In January, the economic sentiment index produced by the Hungarian Economic Research Institute (GKI, Magyar Gazdasagkutato Intezet) rose a full percentage point to minus 6.3 points, which marked the highest level since April 2006. The increase was due to improved businesses confidence, which reflects recovering external demand amid stronger-than-expected growth in Western Europe. In contrast, consumer sentiment decreased for the third consecutive month. Business sentiment increased to plus 0.5 points, which represented the highest reading in nearly a decade. According to GKI, expectations were higher in all sectors compared to December, although the increase was most evident in trade and in services. In addition, the economic outlook improved, as industry and services were slightly more optimistic than last month, while the construction sector was more pessimistic. Meanwhile, consumer confidence dropped for the third month in a row to minus 25.8 points. The number of households planning to purchase major durable consumer goods declined, reflecting a worse assessment of their own current financial situation as well as increased fears of unemployment. However, respondents were more optimistic about the outlook for the overall economy and expect the economy to continue improving in the future.
Hungary Economic Sentiment
Business confidence rises to highest level in almost 10 years
January 24, 2011
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Hungary Economic News
October 11, 2016
In September, consumer prices rose 0.2% from the previous month, contrasting August’s 0.4% decrease.
October 7, 2016
According to preliminary data released by the Statistical Institute (KSH) on 7 October, industrial output in August rose a working-day adjusted 3.5% from the same month last year, rebounding from July’s 0.1% decrease and marking a four-month high. On a monthly basis, industrial production increased a seasonally- and working-day adjusted 1.6% in August, which followed July’s 0.3% decrease.
September 26, 2016
The GKI economic sentiment indicator advanced slightly from August’s minus 3.9 points, which was the lowest reading in over two years, to the still-low level of minus 3.6 points in September.
Hungary: Central Bank leaves base rate at 0.90%, continues easing monetary conditions by capping main deposit facility
September 20, 2016
The Central Bank of Hungary (NBH) held all rates constant at its 20 September monetary policy meeting, but continued easing monetary policy conditions by using unconventional monetary policy instruments.
September 9, 2016
In August, consumer prices fell 0.4% over the previous month, coming in below July’s softer 0.2% decrease.