Hungary: Economic sentiment reaches 12-year high
January 27, 2014
In January, the GKI-Erste economic sentiment index rose to minus 1.7 points, which was up from the minus 2.9 points recorded in December 2013. The figure marked the highest level since October 2002. According to the GKI economic research institute, the improvement was the result of an increase in consumer confidence.
Consumer sentiment improved from minus 22.7 points in December to minus 17.2 points in January. Consumers' prospects for saving money and their assessment of personal finances improved over the previous month. FocusEconomics panelists expect total consumption to expand 1.3% in 2014, which is unchanged from last month's projection. For 2015, the panel expects total consumption to increase to a 1.6% expansion.
Business sentiment, however, inched down from 4.0 points in December to 3.8 points in January. According to GKI, "in the business sphere expectations became more upbeat in all sectors except industry, particularly in commercial and services companies." Panelists expect fixed investment to increase 2.4% in 2014, which is unchanged over last month's estimate. For 2015, the panel sees investment expanding 2.8%.
Author: Dirina Mançellari, Senior Economist