June 27, 2016
The GKI-Erste economic sentiment indicator worsened in June, dropping from minus 3.2 points in May to minus 3.7 points. The result was driven by a deterioration in both business and consumer sentiment.
Business sentiment tallied 1.7 points in June, coming in below May’s 2.3 reading and marking the lowest print in nearly two years. According to GKI, in June, sentiment fell across the trade and services sectors, while it strengthened in the industry and construction sectors.
Meanwhile, consumer confidence moderated from May’s minus 18.9 points to minus 19.2 points in June. According to GKI, the decrease was driven by consumers becoming more pessimistic about their savings capacity and their ability to purchase large-ticket items. Conversely, they were more optimistic regarding the general economic outlook in the next 12 months. Households’ opinions regarding their financial situations in the next year did not change compared to May.