Business confidence improves as consumer sentiment worsens

Analysis

Economic research institute GKI's combined gauge of consumer and business sentiment rose to -1.1 points in July from -2.2 in the previous month on an improvement in confidence among companies, according to a report by state news wire MTI.

GKI's business confidence index climbed to 4.4 points in July from 2.1 in June. The gauge returned to pre-crisis levels already in May.

Companies in the industrial sector were most optimistic as their outlook for production improved and a labor shortage again became the biggest obstacle to ramping up output.

The outlook for construction companies worsened in July amid a shortage of building materials and tight capacity.

Optimism in the commerce sector grew as sales positions and orders improved.

Confidence in the service sector rose as assessments of business trends improved, but the outlook weakened a bit.

GKI's consumer confidence index fell to -16.9 points in July from -14.5 in June, but was still close to pre-crisis levels. Households' assessments of their financial situations worsened a little, but more said they could make savings.

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