Hungary: Economic sentiment drops to five-month low in January
January 25, 2015
In January, the GKI-Erste economic sentiment index fell from December’s plus 0.2 points to minus 2.9 points, representing a third consecutive decline and the lowest reading in five months.
Consumer sentiment fell from minus 22.1 points in December to minus 23.8 points in January, marking the lowest value since October 2013. According to GKI, “[h]ouseholds [..] assessed their financial situation and savings capacity for the following year slightly worse than in December.”
Business sentiment also declined, as it fell from 8.1 points in December, which had marked a record high, to 4.4 points in January. According to GKI, the result reflects that expectations moderated across all sectors. Regarding the expectations on the general economy, GKI-Erste added that the, “assessment of the perspectives of the Hungarian economy deteriorated slightly in industry and among consumers, while in other sectors it deteriorated spectacularly.”