Hungary: Economic sentiment increases in November
November 25, 2013
In November, the GKI-Erste economic sentiment index rose to minus 6.1 points, marking the highest level in nearly three years. The result was a significant improvement over the minus 9.3 points recorded in October. According to the GKI economic research institute, the improvement was the result of an increase in both business expectations and consumer sentiment.
Consumer sentiment rose from minus 29.4 points in October to minus 23.3 points in November, reaching the highest level since April 2011. Consumers were more optimistic about their future financial situations and they were more willing to buy durable goods compared to the previous month. FocusEconomics panelists expect total consumption to contract 0.6% this year, which is up 0.2 percentage points from last month's projection. For next year, the panel sees total consumption rebounding to a 0.8% expansion, which is up 0.3 percentage points from last month's estimate.
Business sentiment rose from minus 2.3 points in October to minus 0.1 points in November. The industrial sector improved significantly, while the other sectors showed virtually no change over the previous month. Panelists expect fixed investment to fall 2.3% this year, which is up 0.1 percentage points over last month's estimate. For next year, the panel sees investment expanding 0.5%, which is unchanged from last month's forecast.
Author: Dirina Mançellari, Senior Economist