Hungary: Economic sentiment recovers modestly amid stronger business confidence
April 26, 2011
In April, the GKI-Erste economic sentiment index stepped up from minus 10.7 points in March to minus 9.1 points in April. The moderate improvement followed on a significant drop observed last month, which was the result of consumer confidence falling almost ten full points to its lowest level in over a year. That said, consumer confidence in April recovered only 0.5 points to reach minus 36.8 points. According to GKI, the moderate rise reflected a better assessment of the respondent's savings capacity as well as better conditions for making major purchases. Compared to consumer sentiment, business sentiment recovered more markedly from last month's decline, which represented the first drop since September 2010. As throughout last year, the rebound was mainly fuelled by higher expectations in the industrial sector, where the assessment of both current and future production levels increased, benefiting from the sustained recovery in Western Europe.