Hungary: Economic sentiment declines further amid increasing consumer pessimism
June 22, 2011
In June, the GKI-Erste economic sentiment index dropped to minus 13.9 points from minus 13.2 points in May, which represents the lowest level since May last year and confirms signs of softer growth ahead. The decline was mostly fanned by a drop in consumer sentiment, which has deteriorated almost uninterruptedly since November, and fell from minus 38.5 points in May to minus 41.0 points. Meanwhile, business sentiment moderated a notch in June to minus 4.4 points from minus 4.3 points in May, which, despite being well above the minus 37.7 observed at the trough of the crisis, represents the lowest level since October. The slight moderation was widespread, as according to GKI, ?only industrial expectations improved, but they increased significantly less than the extent of the drop in May.?