GKI: Consumer, business confidence hit lows for the year

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Business and consumer confidence declined to a new low for the year, according to a study by economic research institute, GKI, Hungarian news agency MTI reported today.

GKIʼs combined consumer and business confidence index was recorded as going negative, dropping to minus 3.9 points in August from zero in July. The business confidence index reportedly dropped to 1.2 points from 5.6.

Industrial companies gave a pessimistic assessment of output over the past few months and their outlook has worsened, too, as indicated by their evaluations of order stock and inventories, the GKI study showed.

Confidence levels in the construction industry also reportedly fell to a three-year low.

In commerce, confidence was negative for the first time since late 2013. Sales positions worsened and companies now expect fewer orders, according to GKI.

In the service sector, companies have delivered a pessimistic assessment of business over the past three months, though the outlook for the coming months is little changed.

GKIʼs consumer confidence index dropped to -18.6 points in August from -16.1 in July. Fewer households expected an improvement in their financial positions and the number who thought they could set aside savings or make a big purchase dropped.

GKIʼs study into consumer and business confidence is supported by European Union funding.

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