Hungary: Economic sentiment deteriorates to 27-month low in July
July 21, 2019
The GKI economic sentiment index, a composite indicator, tumbled for the second consecutive month to 0.6 points in July from 2.4 points in June. The reading was the lowest since April 2017 and was underpinned by a deterioration in both business sentiment and consumer confidence.
Business confidence slid for the seventh consecutive month, dropping to 4.3 points from 5.7 points. Less upbeat expectations in the industrial, trade and services sectors drove the downturn, while sentiment in the construction sector remained stable.
Meanwhile, consumer confidence fell to minus 10.1 points in July from minus 7.0 points in June. Consumers’ less favorable assessments on their personal finances, savings ability and the capacity to purchase high-value durables were behind the drop.
Author: Nihad Ahmed, Economist