Hungary: Economic sentiment improves in May amid easing of lockdown measures
May 25, 2020
The GKI economic sentiment index, a composite indicator, rose to minus 28.1 in May from minus 33.1 in April, which had marked the worst reading in over a decade. May’s print reflected an improvement in sentiment amid easing of Covid-19 induced lockdown measures.
Business confidence increased to minus 24.5 in May from minus 27.2 in April driven by less pessimistic sentiment in the construction, trade and services sectors. Meanwhile, confidence in the industrial sector weakened further in May amid downbeat expectations of stock orders and exports.
Consumer confidence rose to minus 38.5 in May from minus 49.8 in the previous month as households became slightly less worried over job losses ahead. Moreover, their assessment of the prospects for the Hungarian economy improved in May, while consumers’ inflation expectations eased.
Author: Hanna Andersson, Economist