Hungary: Economic sentiment stays broadly unchanged in August
August 25, 2014
In August, the GKI-Erste economic sentiment index remained virtually unchanged as it inched down from the minus 3.9 points recorded in July to minus 4.1 points. Economic sentiment has not been this low since November 2013. According to the GKI economic research institute, the print reflects that a decline in consumer sentiment was almost offset by an improvement in business confidence.
Consumer sentiment fell from minus 18.9 points in July to minus 21.9 points in August. According to GKI, “[h]ouseholds assessed their financial situation and their savings capacity for the following year slightly worse than in the previous month. In addition, the fear of unemployment somewhat strengthened.”
Business sentiment rose from 1.4 points in July to 2.2 points in August. According to GKI, the reading resulted from an improvement in expectations of commercial companies and, to a lesser extent, of industrial companies, while the expectations of the services and construction sectors remained relatively unchanged.