Hungary: Economic sentiment stable in July
July 26, 2015
In July, the GKI-Erste economic sentiment came in at minus 3.1 points, which was virtually unchanged over June’s minus 3.2 points. Following the moderation in sentiment observed from November of last year to March, sentiment remained broadly stable in the last three months.
Consumer sentiment advanced slightly from minus 27.0 points in June to minus 26.0 points in July. According to GKI, “consumers evaluated their financial situation in the next 12 months better than in the previous month, whereas they assessed their savings capacity slightly worse. Although households considered the current conditions of purchasing high-value durables markedly deteriorating, their expectations for the next 12 months were slightly improving in this respect.”
Business sentiment was broadly unchanged, receding only marginally from June´s 5.1 points to 5.0 points in July. According to GKI, the result reflects that slightly brighter expectations in the trade and services sectors were offset by falling confidence in construction. Expectations in the industrial sector were unchanged over the previous month. Regarding expectations on general economic conditions, GKI-Erste added that, “respondents assessed the perspectives of the Hungarian economy less favourable than in June in every segment, with the exception of trade and households.”