Hungary: Economic sentiment erodes further
July 25, 2011
The economy is showing signs of weakness at the outset of the third quarter. In July, the GKI-Erste economic sentiment index fell to minus 16.0 points from minus 13.9 points in June, which marked the lowest level since April last year. The drop was the result of a decline in both business and consumer sentiment. Consumer confidence continued to deteriorate, falling from minus 41.0 points in June to minus 42.0 points in July, which represents the lowest level since February 2010. Meanwhile, business confidence moderated for the third month in row from minus 4.4 points in June to minus 6.9 points in July, which also marked the lowest level in over a year. According to GKI, the drop came in as the ?industrial confidence index plummeted spectacularly, and this deteriorating trend has prevailed for more than a quarter.? In addition, GKI highlighted that the ?already very low value of the confidence index of construction has further decreased for three months.?