Business, Consumer Confidence Weaken Further in August

Analysis

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Economic research institute GKI's combined gauge of consumer and business confidence fell to -14.3 points in August from -9.4 points in the previous month, according to a report by state news wire MTI.

The business confidence index fell to -2.1 points from +2 points, slipping into negative territory for the first time in more than a year.

In the industrial sector, the outlook for production worsened, but companies signaled an improvement in order stock and inventories.

Sentiment in the construction sector reached a three-month low on growing pessimism among civil engineering companies.

In the commerce sector, an improvement in sentiment in the previous month was wiped out completely in August as outlooks for sales positions and orders worsened.

Among service sector companies, assessments of business in recent months and outlooks for turnover in the future deteriorated.

The consumer confidence index dropped to -49.2 points in August from -41.7 in the previous month. Households said their financial positions were worse and fewer could make savings. Fewer said they planned to make big-ticket purchases.

GKI's gauge of business and consumer confidence is supported by European Union funding.

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