MKIK company sentiment index falls in October
The Hungarian Chamber of Commerce and Industry (MKIK) Economy and Enterprise Research Institute index of company sentiment in Hungary dropped from +16.8 in April to +1.3 in October, MKIK President Lazslo Parragh said on Friday.
Mr Parragh said that even though the October result of the index based on a survey of 2,000 companies operating in Hungary was still positive, its sharp decline from April serves as a stern warning of problems in the country’s economy.
Between April and October sentiment had deteriorated at foreign-owned companies and, to an even more dramatic degree, at small Hungarian companies focused on production for the domestic market and construction companies.
Responses in the survey project that the current high jobless rate will persist, Mr Parragh said.
Mr Parragh told MTI that the government’s Thursday decision to begin talks with the IMF regarding a new type of financial cooperation was unavoidable, adding that Hungary’s business sector had warned that the forint had begun to weaken uncontrollably as a result of speculation.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.