Hungary: Economic sentiment falls in November

The GKI economic sentiment index, a composite indicator, fell to minus 22.5 in November from minus 21.9 in October. November’s result was the lowest reading in 23 months and was driven by worsening business sentiment more than offsetting somewhat less downbeat consumer confidence.

Business confidence declined to minus 11.6 in November from minus 10.1 in October. The print reflected a decrease in sentiment in the construction, industrial and services sectors.

Meanwhile, consumer sentiment rose to minus 53.4 in November from minus 55.4 in October due to households’ improved assessments regarding their own financial situations and their future possibility of purchasing big-ticket items.

FocusEconomics panelists forecast fixed investment to expand 7.2% in 2023, which is unchanged from last month’s projection. For 2024, the panel sees fixed investment growing 5.8%. Panelists project private consumption to increase 4.8% in 2023, which is unchanged from last month’s projection. For 2024, panelists see private consumption expanding 3.7%.