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Consumer confidence drops to lowest level in more than ten years

GfK Hungária and Corvinus University's consumer confidence index dropped 26 points to 124.4 in the fourth quarter, falling to its lowest point in more than ten years as Hungarians endured the effects of the global financial and economic crisis.

Though the index reached its lowest level in about eleven years, the fall from Q3 to Q4 was not the sharpest: it dropped 52 points in Q2 2006, when the government announced austerity measures.

The measure of households' assessment of their current financial situation dropped 12 points from Q3 to Q4. The measure of the outlook for their financial situations was down 13 points.

The measure of propensity to make purchases slipped 27 points to 117.6, its lowest level ever.

The sub-index for consumer expectations fell 24.9 points to 130.5.

About 89% of households said they expected unemployment to increase in the coming twelve months, up from 48% in Q3.

Two-thirds of households said prices would rise, down from 91%. Two-thirds also said prices would rise faster than wages.

The percentage of households that said they could not make savings rose to 57% from 43%.

Only about four in ten households said they planned to make a big purchase. (MTI – Econews)