Hungary: Economic sentiment ticks down in February
February 24, 2020
The GKI economic sentiment index, a composite indicator, declined for the third consecutive month in February and ticked down from minus 2.5 in January to minus 2.6 in February. Thus, it marked the worst reading in over three years. February’s decline mainly reflected a deterioration in business expectations.
Business confidence decreased to 0.7 in February from 1.0 in January due to lower confidence in the trade, services and construction sectors. Meanwhile, sentiment in the industrial sector improved from January amid more favorable production prospects.
Consumer confidence improved somewhat in February, with the index rising marginally to minus 12.1 from minus 12.5 in January, which had marked an over two-year low, as households assessed their personal finances in the year ahead slightly better than they did a month ago. However, consumers appraised their savings capacity slightly more negatively than a month ago and were less optimistic about making large-ticket purchases.
Author: Hanna Andersson, Economist