Hungary: Economic sentiment inches down in May
May 25, 2015
In May, the GKI-Erste economic sentiment index inched down from April’s minus 2.9 points to minus 3.1 points. Sentiment has been declining since November of last year, with a brief interruption in April.
Consumer sentiment advanced from minus 25.0 points in April to minus 22.6 points in May. According to GKI, the improvement resulted from the fact that households assessed their own financial situation and their savings capacity during the next year more positively. While they were less positive about the current conditions for buying large-ticket items than in the previous month, their expectations regarding the future conditions for buying high-value items improved.
By contrast, business sentiment worsened, falling from 4.9 points in April to 3.7 points in May. According to GKI, the result reflects that expectations deteriorated in the trade sector, industrial and construction sectors. Conversely, the services sectors recorded a significant improvement. Regarding expectations on general economic conditions, GKI-Erste added that, ”the assessment of the perspectives of the Hungarian economy got worse, with the exception of services.”