Hungary: Falling business confidence pushes down economic sentiment in November
November 25, 2015
Business confidence in Hungary fell to a six-month low in November, weighing on economic sentiment in the country. After rising for four straight months, GKI-Erste economic sentiment deteriorated from October’s minus 0.8 points to minus 1.7 points. October’s reading had marked the best result in ten months.
Business sentiment fell from October’s 5.8 points to 4.6 points in November. According to GKI, the result was driven by deteriorating expectations in the construction and services sectors. Survey participants expect a decrease in investment this year followed by a modest rise next year. On a positive note, employment expectations were bright and improved in almost all sectors surveyed. In addition, opinions regarding the prospects of the Hungarian economy improved.
Meanwhile, consumer confidence remained at October’s minus 19.6 points in November. According to GKI, the result came on the back of households’ improved views over their future financial situation while they viewed their saving capability worse than the previous month.