Hungary: Economic sentiment falls to five-month low
January 26, 2016
The GKI-Erste economic sentiment deteriorated notably in February, swinging from plus 1.0 points in January to minus 1.8 points in February, thus hitting a five-month low. January’s figure had marked the best result in 15 months. The result was driven by a downturn in both business and consumer confidence.
Business sentiment fell to a three-month low, decreasing from January’s 7.2 points to 4.6 points. According to GKI, the result was driven by lower expectations regarding incoming orders. In addition, confidence in the services sector decreased from last month. Employment expectations decreased in all sectors, except construction, which remained stable. Moreover, all sectors were less optimistic in their assessment of the perspectives of the Hungarian economy.
Meanwhile, consumer confidence fell from January’s minus 16.6 points to minus 20.2 points in January, which marked a five-month low. According to GKI, the deterioration came on the back of households’ more pessimistic views regarding their financial situation and their saving capability.