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Consumer confidence falls, business confidence rises

Economic research institute GKIʼs Economic Sentiment Index, a combined gauge of consumer and business confidence, improved by 0.3 of a point to 7.5 in November, rising for the second month in a row, Hungarian news agency MTI reported.

Of the two main components of the Economic Sentiment Index, the standalone business confidence index rose 1.3 points to 14.4, while the consumer confidence index fell 2.6 points to minus 12.1.

Sentiment in the industrial sector improved minimally on a more optimistic outlook for the coming period and more positive assessments of orders, particularly export orders.

The construction sector confidence index rose to a new peak as civil engineering companiesʼ expectations improved, while those of building companies slightly worsened. The assessment of output in the previous three months slightly deteriorated, while that of the order stock was significantly better.

Retailers and wholesalers were more pessimistic about their sales positions, but more positive about prospective orders. Sentiment in the service sector improved for the third month in a row.

In terms of consumer confidence, householdsʼ evaluation of their future ability to make savings worsened significantly from the previous month and they were also far more pessimistic about their ability to make big-ticket purchases.

GKI compiles the index with the support of European Union funding.