Hungary: Economic sentiment improves on less pessimistic consumers
January 20, 2013
The GKI-Erste economic sentiment index rose to minus 19.6 points in January, from minus 21.2 points in December, reaching the highest level since April last year. The increase came on the back of a notable improvement in consumer confidence, whereas business sentiment remained unchanged.
Consumer sentiment rose from minus 49.3 points in December to minus 43.4 points in January, the highest level since August 2011, as consumers' assessment of their financial situation improved over the previous month. In addition, households' willingness to buy high-value durable goods in the next 12 months increased notably. Consensus Forecast panellists anticipate...
Meanwhile, business sentiment remained unchanged at December's minus 11.3 points. Pessimism decreased in most sectors, but the improvement was entirely offset by a deterioration in the services outlook. Accordingly, improving employment expectations in the industrial sector compensated for lower hiring expectations in the services sector.
Author: Ricardo Aceves, Senior Economist