Business, consumer confidence decline on effect of war - GKI

Analysis

Image by Shutterstock.com

Business and consumer confidence deteriorated in March, against the backdrop of the war in Ukraine, a monthly gauge by economic research institute GKI shows, according to a report by state news wire MTI.

GKI's business confidence index fell to 2.4 points in March from 5.3 in February.

In the industrial sector, assessments of order stock and output in the recent period as well as outlooks for production in the coming months worsened. However, more companies said they wanted to move forward with investments.

Overall sentiment among construction companies was little changed: outlooks for the building segment improved, but worsened in the civil engineering segment.

In the commerce sector, confidence increased, rebounding after a decline in February.

In the service sector, confidence slipped, but the gauge was still over the level in January.

The consumer confidence index dropped to -28 points in March from -17 in February. Households said their financial situations improved - albeit a month after families raising children got tax refunds and many public sector workers got fatter paycheques, GKI noted - but their outlooks worsened and fewer planned purchases of big-ticket items.

ADVERTISEMENT

Companies Borrow HUF 256 bln in October Banking

Companies Borrow HUF 256 bln in October

MPs Approve Tax Changes Parliament

MPs Approve Tax Changes

Mahart Container Center Depot Opening at Budapest Airport Transport

Mahart Container Center Depot Opening at Budapest Airport

Countries Exchange Experiences for Better Production of Catt... Conferences

Countries Exchange Experiences for Better Production of Catt...

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.