Hungary: Economic sentiment slips to near three-year low in October
October 28, 2019
The GKI economic sentiment index, a composite indicator, fell to minus 0.7 in October from minus 0.3 in September—the worst print since December 2016. October’s reading was underpinned by a sharp drop in consumer confidence, which more than offset a jump in business sentiment.
Consumer confidence deteriorated markedly in October following two consecutive months of notable improvement. The index tumbled to minus 9.8 from minus 3.7 in September. Households held less favorable assessments on their personal financial situation and ability to save, along with a reduced willingness to purchase big-ticket items.
Conversely, business confidence recovered some lost ground in October after slipping to a nearly six-year low in September, but on the whole remained weak. The index rose to 2.5 from 0.9. Confidence improved significantly in the industrial and trade sectors, while sentiment in the construction and services sectors remained relatively stable.
Author: Nihad Ahmed, Economist