Hungary: Economic sentiment falls to ten-month low
May 23, 2011
In May, the GKI-Erste economic sentiment index dropped to minus 13.2 points from minus 9.1 points in April, which represents its lowest level since May last year. The decline was mainly fuelled by deteriorating prospects in the business sphere, although consumer sentiment also fell further following a significant drop in March. Consumer confidence dropped 1.7 points in May to minus 38.5 points, which represents the lowest level since March 2010. Meanwhile, business sentiment fell into negative territory, dropping 4.9 points to minus 4.3 points, and thereby recording the second drop after reaching a peak in February. Most importantly, the deterioration was mainly due to a weaker assessment of the industrial sector, which dropped markedly for the first time in nearly two years.