Hungary: Economic sentiment inches down in June
June 23, 2015
In June, the GKI-Erste economic sentiment index inched down from May’s minus 3.1 points to minus 3.2 points. Sentiment has been declining since November of last year, with a brief interruption in April.
Consumer sentiment fell from minus 22.6 points in May to minus 27.0 points in June. According to GKI, “households assessed both their financial situation for the following year and their savings capacity in the next year worse than in the previous month. Households considered the conditions of purchasing high-value durables to be unchanged; however, those for the next year were perceived significantly deteriorating.”
By contrast, business sentiment improved, rising from 3.7 points in May to 5.1 points in June. According to GKI, the result reflects that expectations improved in the industrial, construction and trade sectors. Conversely, the services sector recorded a setback. Regarding expectations on general economic conditions, GKI-Erste added that, ”the assessment of the prospects of the Hungarian economy had been deteriorating for several months, and with the exception of industrial and service companies this trend continued in June as well.”