Hungary: Economic sentiment further down in January
January 23, 2012
In January, the GKI-Erste economic sentiment index dropped to minus 26.8 points from minus 24.6 points in December. The drop was the result of both consumer and business sentiment deteriorating over the previous month. Consumer confidence continued its downward trend, falling from minus 53.3 points in December to minus 56.6 points in January, which represents its lowest level since September 2009. The decline was mainly the result of a more negative assessment of Hungarian households' own financial situation. Meanwhile, business sentiment dropped 1.8 points to minus 16.3 points. According to GKI, expectations in industry and construction did not change compared with December, whereas companies in trade and services turned markedly more pessimistic. On a positive note, however, there was a broad-based improvement in the assessment of the perspectives for the Hungarian economy, which improved in all sectors over the previous month.