Hungary: Economic sentiment improves in September
September 27, 2013
In September, the GKI-Erste economic sentiment index increased to minus 11.6 points, up from the minus 14.3 points recorded in August. The reading marked the highest level since April 2011 and was mainly driven by an increase in both business expectations and consumer sentiment.
Consumer sentiment increased from minus 36.9 points in August to minus 31.0 points in September. Households' view of their financial situation next year as well as whether they would consider buying high-value durable goods improved over the previous month. FocusEconomics panelists expect total consumption to contract 0.6% this year, which is up 0.2 percentage points from last month's projection. For next year, the panel sees total consumption rebounding to a 0.8% expansion.
Business sentiment rose from minus 6.3 points in August to minus 4.8 points in September, due to an improvement in firms' assessment of "past production, production prospects and the stock of orders", which offset the decrease in businesses' assessment of exports.
Panelists expect fixed investment to fall 2.3% this year, which is up 0.1 percentage points over last month's estimate. For next year, the panel sees investment expanding 0.5%, which is unchanged from last month's forecast.
Author: Dirina Mançellari, Senior Economist