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Consumer confidence improves but purchasing propensity still low, GfK-Corvinus survey shows

GfK Hungária and Corvinus University's consumer confidence index measured 175.7 points in Q3, 2.8 points higher than in the previous quarter, GfK told MTI on Wednesday.

The index bottomed out at 114.5 points in March 2009.

The sub-index that gauges consumer expectations rose 6 points to 224.7.

The sub-index that measures propensity to make purchases stagnated as households' assessments of their material situations and the number of households planning to buy consumer durables were little changed.

The percentage of households who expect the unemployment rate to continue to rise fell to about 25%.

About three-fourths of households said they expected prices to rise and put average inflation for the coming year at 8%.

A little more than half of households expect their real income to rise at a slower rate than inflation.

The percentage of households who expect interest rates to rise in the coming twelve months fell to 35% in Q3 from 44% in Q2.

About one-third of households think it is not a good time to borrow, and 42% have no immediate plans to use their savings. (MTI-Econews)