Hungary: Economic sentiment improves slightly for the first time since April
October 23, 2011
In November, the GKI-Erste economic sentiment index rose to minus 23.2 points, up from the minus 24.0 points recorded in October. The reading marked the first improvement after seven months of continuous decline. Both business and consumer sentiment improved slightly from the previous month. Consumer confidence, which has declined almost uninterruptedly for nearly a year, inched up from minus 49.8 points in October to minus 49.5 points. The modest increase came on the back of a higher willingness of households to undertake major purchases, whereas the assessment of their own financial situation for the coming year worsened over the previous month. Meanwhile, business sentiment rose from minus 14.9 points to minus 14.0 points. According to GKI, the improvement was mainly due ?to service companies as their expectations rose back to the September level after a sharp decline lasting for months.? In contrast, expectations in the industrial sector declined slightly over the previous month.