Hungary: Economic sentiment approaches two-year low in April

The GKI economic sentiment index, a composite indicator, plummeted to a 23-month low 2.9 points in April from 6.2 points in March. April’s nosedive reflected a deterioration in business confidence, which more than offset an improvement in consumer confidence.

Business confidence fell amid anxieties in the industrial and construction sectors, with the index falling to 7.1 points from 12.1 points in March. Apprehension was broad-based, however; the trade and services sectors also witnessed a drop in sentiment.

Meanwhile, consumer confidence continued to climb in April, with the index rising to minus 8.9 points from minus 10.7 points in March. April’s uptick reflected households’ more favorable assessment of their ability to save, although they were more downbeat on their financial situation.

Hungary Fixed Investment Forecast

FocusEconomics panelists expect fixed investment to grow 7.8% in 2019, which is unchanged from last month’s projection. For 2020, the panel sees fixed investment growing 4.0%. FocusEconomics project expect private consumption to expand 3.9% in 2019, which is unchanged from last month’s projection. For 2020, panelists see private consumption expanding 3.2%.