Hungary sentiment index at 30-month low

Portfolio
The GKI economic sentiment index dropped to a 30-month low as both the business and consumer sentiment indices dropped in July, GKI Gazdaságkutató Zrt. said on Monday. Business confidence has been decreasing since January and is currently at early 2017 levels.
In July, the consumer confidence index decreased roughly as much as it rose in June. Households saw their financial situation, their savings capabilities and the possibility of purchasing high-value durables as worse than a month earlier. The consumer index has been lower in recent months, but it's still visibly lower than around the elections in spring 2018. Nevertheless, Hungary's economy remains characterised by optimism overall, the survey, which is supported by the European Union, found.

The economic sentiment index dropped to 0.6 points in July from 2.4 a month earlier. Business confidence decreased from 5.7 to 4.3 while consumer confidence fell from -7 points to -10.1.

Expectations in all business sectors except construction deteriorated as the business index dropped to its March 2017 level in July, continuing this year's falling trend. Production volume, the assessment of stocks and incoming orders (except exports) all decreased, while production outlook remained unchanged.

' title='
The construction index was unchanged in July. Structural engineering companies regained some of their recently lost optimism, while civil engineering firms became more pessimistic in July. The assessment of production in the preceding three months dropped slightly while that of orders plummeted.

The trade confidence index also decreased in July after holding level in June, remaining in the central zone of the relatively narrow band in which it had fluctuated for the past five years. The assessment of sales positions improved slightly, expectations concerning new orders fell considerably, and respondents assessed the size of stocks as the same as in June.

The services confidence index continued to decrease in July as the assessment of business climate, turnover and sales prospects all fell.

The employment intentions of all sectors rose in July to some degree, with construction companies leading the way. The fear of unemployment of households rose slightly after the July decrease. Intentions to raise prices were somewhat lower in all sectors, while the inflationary expectations of consumers continued to decrease slightly.

The assessment of the situation of the Hungarian economy remained unchanged overall. It improved considerably in industry after a major drop in June but fell perceptibly in trade and services as well as among households,

the GKI said in summary.
 

More in Economy

forint-fizetes-atlagber-atalgfizetes-netto-brutto-vagyon-osszeg-stock
July 02, 2025 13:47

Hungary to raise wages in September this year and January next year

Teachers' pay increases based on performance evaluation

GettyImages-171413154-család-étel-étkezés-étrend-gyermek-kisgyermek-otthon-reggeli-szendvics
July 02, 2025 09:49

A legendary factory is to be shut down in Hungary, affecting 160 workers

'Bear cheese' is produced here too

GettyImages 1463402564-duna-épület-főváros-idegenforgalom-turizmus-város
July 02, 2025 09:25

Vienna-based research institute publishes stark analysis of Hungary's economic prospects

Situation far from the 'flying start' predicted by the PM

nő parlament budapest
July 02, 2025 09:20

Hungary almost reaches annual net issuance goal in H1 - debt manager

96% of planned yearly net issuance has been completed

catl
July 02, 2025 08:24

Layoffs begin at CATL's battery plant in Debrecen

Presumably linked to the halting of the second plant unit's preparation

GettyImages-1455628122-
July 01, 2025 13:28

New political opinion polls show a steadily growing Tisza lead over Fidesz

Several surveys received in the last week

LATEST NEWS

Detailed search