Hungary: Economic sentiment stabilizes in February
February 22, 2013
The GKI-Erste economic sentiment index inched up to minus 19.5 points in February. The figure was virtually unchanged from minus 19.6 points seen in January, which marked the highest level since April last year. According to GKI, an improvement in consumers' morale offset deteriorating business confidence.
Consumer sentiment rose from minus 43.4 points in January to minus 40.9 points in February, the highest level since August 2011, as consumers' assessment of their financial situation in next 12 months improved over the previous month. Consensus Forecast panellists expect total consumption to contract 0.7% this year, which is down 0.2 percentage points from last month's projection. For next year, the panel sees total consumption rebounding to a 0.7% expansion.
On the other hand, business sentiment fell from minus 11.3 points in January to minus 12.0 points in February. Pessimism increased in the industrial and commercial sectors, offsetting an improvement in the construction sector. Accordingly, employment expectations deteriorated slightly. Panellists expect fixed investment to fall 2.3% this year, which is unchanged over last month's estimate. For next year, the panel sees investment expanding 0.7%.