Hungary: Rise in economic sentiment continues, business sentiment hits record-high
April 25, 2014
In April, the GKI-Erste economic sentiment index swung from the minus 0.7 points recorded in March to 1.7 points. According to the GKI economic research institute, the rise in economic sentiment came on the back of improving business sentiment and, to a lesser extent, consumer confidence.
Consumer sentiment increased from minus 15.9 points in March to minus 15.3 points in April. According to GKI, “households assessed their financial situation for the following year better and their saving capacity worse than in March.” FocusEconomics panelists expect total consumption to expand 1.4% in 2014, which is unchanged from last month's projection. For 2015, the panel expects total consumption to increase to a 1.7% expansion.
Business sentiment rose from 4.7 points in March to 7.7 points in April and reached a record high. According to GKI, the figure resulted from an improvement in expectations for all sectors except for trade. The construction sector registered the largest improvement, followed by the industrial sector. Panelists expect fixed investment to increase 4.0% in 2014, which is unchanged over last month's estimate. For 2015, the panel sees investment expanding 2.8%.
Author: Armando Ciccarelli, Head of Data Solutions