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Consumer confidence declines in Q4

GfK Hungaria and Corvinus University's consumer confidence index measured 157.5 points in Q4, 18.2 points lower than in the previous quarter GfK told MTI.

The index bottomed out at 114.5 points in March 2009.

The sub-index that gauges consumer expectations fell 34 points to 191 in Q4 from Q3.

The sub-index that measures propensity to make purchases reached 120.3 points, about the same level as in the previous quarter.

The percentage of households who expect the unemployment rate to increase rose to 35% in Q4 from 25% in Q3.

About 85% of households said they expected prices to rise and put average inflation for 2011 at 8%. About 57% of households expected their real income to rise at a slower rate than inflation.

The percentage of households that expect interest rates to rise in the coming twelve months was 45% in Q4, up from 35% in Q3.

About one-quarter of households think it is not a good time to borrow and 43% are unsure whether to dip into savings to make earlier planned purchases. (MTI – Econews)