GKI: business confidence up, consumer confidence down
Compared to its historical peak at the end of 2017, economic research institute GKI’s economic sentiment index continued to rise in January. This is the result of continued progress in business expectations and a slight deterioration in consumer expectations. Companies consider labor shortages as the main obstacle to expansion.
Economic research institute GKIʼs combined gauge of consumer and business confidence rose to 8.2 points in January, up from 7.9 points in the previous month, national news agency MTI reported.
The business confidence index rose to a new peak of 14.2 points, up from 13.4 points, as optimism among service sector companies improved markedly, while industrial and construction companiesʼ expectations were unchanged and trade companiesʼ expectations slightly deteriorated.
The industrial confidence index edged down as companies became more pessimistic about output levels, production outlook and orders, excluding export orders, while assessments of inventories improved significantly.
The measure of construction companiesʼ confidence was little changed after reaching a high in December. Their assessment of output in the previous three months improved further, while that of the order stock slightly deteriorated.
In the commerce sector, views on sales positions and inventories deteriorated, but assessments of orders slightly improved. The service sector confidence index improved in January on better turnover expectations.
The standalone consumer confidence index fell from -7.7 points to -8.9 points in January. Consumersʼ expectations of their prospective financial position was the best it has been since April 2006, but expectations of their ability to make savings as well as big-ticket purchases slightly worsened.
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