Hungary: Economic sentiment continues to climb
November 23, 2010
In November, the economic sentiment index elaborated by the Hungarian Economic Research Institute (GKI, Magyar Gazdasagkutato Intezet) rose from minus 9.2 points in October to minus 7.3 points, which represents the highest level recorded since May 2006. The figure confirms the notion of a sustained export-led recovery which, according to most recent data, is finally showing signs of filtering into the domestic sector. The rise of the economic sentiment index reflected stronger business confidence, which increased from minus 5.2 points to minus 2.6 points. According to GKI, business confidence was stronger in all sectors with the exception of services. Moreover, respondents in all sectors except construction were more upbeat regarding the economic outlook. Meanwhile, consumer sentiment remains strong. In November, the consumer confidence index was virtually unchanged over the previous month (October: minus 20.6 points; November: minus 20.8 points), which marked the highest level in over four years. The mild drop was the result of slightly weaker confidence of the consumers' own financial situation and on the outlook for the overall economy.