GKI-Erste’s combined measure of consumer and business confidence reached -24.6 points in December, dropping from -23.2 points in the previous month to a two-year low.

The business confidence index measured -14.5 points in December, edging down from -14.0 points in November.

Expectations among industrial companies improved a bit on better assessments of stock of orders.

Trade companies said their sales positions improved, but they were less optimistic about their stock of orders and thought inventory levels were high.

Expectations of service sector companies worsened noticeably, falling to levels in October.

Pessimism remained the worst in the construction sector.

The consumer confidence index dropped to -53.3 points in December from -49.5 points in November. Fewer households said they could make savings but more said they could buy big-ticket consumer durables.

The GKI-Erste seasonally-adjusted consumer and business confidence index is calculated with the support of European Union funding.