GKI-Erste: Business expectations stable, consumer confidence worsens
GKI-Erste's combined gauge of consumer and business confidence fell to 0.7 points in November from 1.2 points in October as both consumer expectations worsened and business expectations remained stable. The business index edged down to 7.7 points from 7.8 points and the consumer index worsened to minus 19.4 points from minus 17.6 points in November.
Business expectations worsened across all sectors apart from the trade sector. Industrial companies' assessment of output in the previous period improved substantially, while the outlook for production and the assessment of the order stock were unchanged, though that of export orders deteriorated.
In the construction sector, the assessment of output in the preceding three months improved slightly, while that of order stock was unchanged. Commercial companies' expectations improved slightly as they were more positive as regards their sale position and order stock. The service sector index corrected slightly after improving in October as companies were more pessimistic as regards prospective turnover.
Consumers' inflationary expectations and unemployment fears were unchanged. The assessment of the outlook of the Hungarian economy deteriorated slightly both among consumers and in all business sectors apart from trade.
Households' assessment of their own financial outlook worsened and fewer said they would be able to make savings and big-ticket purchases in the next twelve months. The seasonally adjusted GKI-Erste index is supported with European Union funding.
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