Hungary: Economic sentiment hits over three-year low
December 20, 2019
The GKI economic sentiment index, a composite indicator, plunged from 2.8 in November to minus 1.1 in December, marking the worst reading in over three years. December’s fall reflected a marked deterioration in business confidence.
Consumer sentiment improved in December, with the index rising to minus 8.4 from minus 9.2 in November. Households assessed both their financial situation and their ability to save more favorably, while their expectations of purchasing big-ticket items worsened slightly.
Meanwhile, business confidence dropped to 1.5 in December from 7.0 in November. December’s deterioration largely reflected slumping confidence in the industrial, construction and trade sectors, while sentiment in the services sector remained stable.
Author: Hanna Andersson, Economist