Hungary: Economic sentiment tumbles in September on a dive in business confidence, while consumer confidence rises to 17-year high
September 23, 2019
The GKI economic sentiment index, a composite indicator, tumbled to 0.3 points in September from 4.0 points in August. September’s print reflected a sharp downturn in business sentiment, which offset an improvement in consumer confidence, and marked the worst reading since February 2017.
Business confidence has been on a downward trend since the beginning of the year and plummeted to 0.9 points in September from 7.5 points in August, which marked the worst print since November 2013. Expectations deteriorated in the industrial, trade and services sectors, while rising slightly in the construction sector.
Conversely, consumer confidence climbed to minus 3.7 points in September from minus 5.9 points in August, which marked the best reading in 17 years. The rise reflected households’ more favorable assessments of their future financial situation and ability to save compared to a month ago.
Author: Nihad Ahmed, Economist