Hungary: Economic sentiment drops amid worsening business confidence
September 24, 2012
The GKI-Erste economic sentiment index edged down from minus 24.7 points in August to minus 25.0 points in September, bringing the index down to its lowest level since January. The deterioration came on the back of a drop in business confidence, which outweighed an improvement in consumers' outlook. Consumer sentiment rose from minus 52.7 points in August to minus 49.5 points in September, but nonetheless remains remarkably pessimistic. The September improvement was the result of a less negative assessment of household's own financial situation as well as of their saving opportunities, which increased their willingness to buy durable consumer goods. On the other hand, business sentiment fell from minus 14.9 points in August to minus 16.4 points in September, which marked the lowest level in almost three years. The moderation was broad-based, with sentiment deteriorating in all sectors with the exception of trade.