Hungary: Economic sentiment moderates in February
February 27, 2017
The GKI economic sentiment indicator ticked down from January’s one-year high of 0.2 points to 0.1 points in February. February’s drop follows three months of consecutive increases and was the result of a deterioration in consumer confidence.
Business sentiment rose from 4.4 points in January to 4.5 points in February, marking the highest reading in seven months. The print came on the back of broadly improved business expectations across nearly all sectors of the economy, with notable improvement recorded in the construction sector. In industry, business sentiment deteriorated significantly as order books worsened. Meanwhile, the prospect of increasing staff levels fell in the industrial sector, while it turned negative in the trade and services sectors and rose in the construction sector.
Following three months of improvement, consumer confidence deteriorated slightly from January’s minus 11.7 points to minus 12.4 points in February. The decrease reflected consumers’ increasingly pessimistic assessment of their future financial situation, though their opinion of their expected savings capacity improved somewhat.
Author: Christopher Thomas, Economist