Hungary: Economic sentiment moderates to eight-month low in July
June 25, 2014
In July, the GKI-Erste economic sentiment index fell from the minus 1.0 points recorded in June to minus 3.9 points. Economic sentiment has not been this low since November 2013. According to the GKI economic research institute, the deterioration in economic sentiment came on the back of a decline in business sentiment that more than offset a marginal improvement in consumer confidence.
Consumer sentiment inched up from minus 19.3 points in June to minus 18.9 points in July. According to GKI, “[h]ouseholds felt their future financial situation and the possibility of purchasing high-value durables somewhat more favourable, whereas they assessed their savings capacity slightly worse than in June.”
Business sentiment fell from 5.4 points in June to 1.4 points in July, which marked the lowest level in eight months. According to GKI, the reading resulted from a deterioration in all sectors except for construction.