Hungary: Consumer confidence plunges further
September 22, 2011
In September, the GKI-Erste economic sentiment index recorded its fifth consecutive monthly decline, dropping two full points to minus 20.9. The deterioration was almost entirely the result of dwindling consumer confidence, whereas business confidence remained virtually unchanged from August. Consumer sentiment plunged further from minus 40.7 points in August to minus 47.2 points in September, which represents its lowest level since February 2010. According to GKI, the decline was the result of households assessing their financial situation and saving capability worse than in August, while their willingness to make major purchases improved only slightly. Meanwhile, business confidence dropped 0.4 points to minus 11.7 points, which also represents its lowest level since February 2010. The drop reflected further deterioration in the construction sector, which according to GKI was already extremely low. In contrast, expectations in the industrial and commercial sectors increased slightly.