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Business, consumer confidence deteriorate in July

Economic research institute GKIʼs Economic Sentiment Index, its combined gauge of consumer and business confidence, fell to 0.6 points in July, a low level not seen for two and a half years. The index was down from 2.4 in the previous month and 4.3 in May. 

GKIʼs standalone business confidence index, one of the two key components of the Economic Sentiment Index, fell to 4.3 points in July, down from 5.7 in June, as the outlook worsened for all but the construction sector.

Industrial companiesʼ assessment of output, order stock and inventories worsened. Confidence in the construction sector stagnated, improving for civil engineering companies, but deteriorating for building companies. Assessments of the order stock worsened noticeably. 

Wholesalersʼ and retailersʼ assessments of sales positions improved slightly, but the outlook for orders worsened. Sentiment in the service sector deteriorated slightly. 

The empirical survey conducted by GKI with the support of the EU shows that the business confidence index has been steadily falling for seven months, and is currently at the level recorded at the beginning of 2017.

The consumer confidence index, the other key component of the Economic Sentiment Index, fell to -10.1 points, slipping further from -7.0. Households were more pessimistic about their own financial position and their ability to make savings, and fewer planned to make big-ticket purchases.

The full report can be read here.