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Consumer expectations fall more than business confidence in June

Analysis

Economic research institute GKI's combined monthly gauge of business and consumer confidence fell to -7.5 points in June from -2.6 in May, according to a report by state news wire MTI.

The business confidence index fell to +3.7 points from +6.9 points.

The gauge of sentiment in the industrial sector fell on production outlooks and assessments of orders although export orders were higher. Views on inventories slightly improved. 

In the construction sector, sentiment worsened for the second month in a row, both among building companies and civil engineering firms. Assessments of output in the previous three months deteriorated and order stocks declined as well.

Sentiment in the commerce sector fell "significantly" after rising "in tiny steps" for three months. Assessments of sales positions and inventories worsened and the outlook for orders dropped to an 18-month low. 

Confidence in the service sector fell for the second month in a row after improving in April. Assessments of business in general, turnover in the previous period and the turnover outlook all weakened.

GKI's consumer confidence index fell to -39.4 points in June from -29.5 points in May, dropping to a new low. Households gave worse assessments of their own financial situations and fewer said they could make savings. Fewer households also 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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