Hungary: Economic sentiment declines in August
August 24, 2012
The GKI-Erste economic sentiment index fell from minus 23.2 points in July to minus 24.7 points in August, bringing the index down to its lowest level since May, and thus reversing the modest gains tallied in the previous two months. Both consumer and business confidence moderated over July. Consumer sentiment dropped from minus 51.4 points in July to minus 52.7 points in August. GKI commented that, for nearly a year, the index has been moving "in a rather narrow range reflecting strong pessimism". The August decline in consumer sentiment was the result of a more negative assessment of the household's own financial situation as well as their willingness to buy durable consumer goods. Meanwhile, business sentiment fell from minus 13.3 points in July to minus 14.9 points in August, which marked the lowest level in seven months. The moderation was broad-based, with sentiment deteriorating in all sectors, especially in industry.