Hungary: Economic sentiment rises to two year-high in June
June 25, 2013
The GKI-Erste economic sentiment index rose to minus 14.8 points in June. The figure is above the minus 16.7 points seen in May and marks the highest level recorded in two years. According to GKI-Erste, the jump was due to improvement in business confidence.
Consumer sentiment dropped from minus 34.4 points in May to 37.3 in June. Consumers' assessment of their future financial situation as well as their ability to save worsened over the previous month. FocusEconomics panellists expect total consumption to contract 0.6% this year, which is up 0.2 percentage points from last month's projection. For next year, the panel sees total consumption rebounding to a 0.8% expansion.
Business sentiment improved in June, rising from minus 10.5 points in May to minus 6.9, which marks the highest level since July 2011. According to the GKI-Erste, the improvement was broad-based, as all the business sectors fared better compared to the previous month, with the exception of trade. The construction sector rose, although less than it did last month, while expectations on services recorded the largest increase, in particular due to an improvement in sales prospects. Meanwhile, prospects for employment in the industrial sector were unchanged, while they improved slightly in other sectors. Panellists expect fixed investment to fall 2.3% this year, which is up 0.1 percentage points over last month's estimate. For next year, the panel sees investment expanding 0.5%.