Hungary: Economic sentiment improves slightly in October
October 23, 2012
The GKI-Erste economic sentiment index inched up to minus 24.6 points in October from minus 25.0 points in September. The slight improvement came on the back of an increase in business confidence, which outweighed a deterioration in consumers' outlook. Consumer sentiment fell from minus 49.5 points in September to minus 53.0 points in October, a five-month low. The October deterioration was the result of a more negative assessment of household's own financial situation as well as of their saving opportunities, which, in turn, decreased their willingness to buy durable consumer goods. On the other hand, business sentiment rose from minus 16.4 points in September to minus 14.6 points in October. The improvement was driven by a less pessimistic outlook on the industrial sector, which more than compensated for a worsening trade outlook. Both construction and services remained virtually unchanged.