Hungary: Economic sentiment inches down again in March
March 20, 2015
In March, the GKI-Erste economic sentiment index inched down from February’s minus 3.2 points to minus 3.6 points, representing a fifth consecutive decline and the lowest reading in seven months.
Consumer sentiment fell from minus 22.4 points in February to minus 25.8 points in March. According to GKI, “[a]lthough there has been an almost continuous deterioration in recent months, the mood is still relatively optimistic. Households assessed their future financial situation in the next year and their savings capacity worse than in February, whereas they considered the possibility of purchasing high-value durables more favourable.”
Conversely, business sentiment improved from 3.5 points in February to 4.2 points in March. According to GKI, the result reflects that expectations improved in the industrial sector, whereas they stagnated in the construction sector and moderated for the trade and services sectors. Regarding the expectations on the general economy, GKI-Erste added that, “the expected position of the Hungarian economy improved slightly with the exception of the service sector. However, it deteriorated somewhat among consumers.”