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Consumer confidence improves, GfK-Corvinus survey shows

GfK Hungária and Corvinus University's consumer confidence index measured 172.9 points in Q2, seven points higher 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 rose 10 points to 218.3.

The sub-index that measures propensity to make purchases continued to rise slowly as households' assessments of their material situations improved, but fewer planned to buy consumer durables.

The percentage of households who expect the unemployment rate to continue to rise fell to about 30%. The same percentage said the rate would fall.

Almost three-fourths of households said they expected prices to rise and put average inflation for the coming year at 9.2%.

About 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 rose to 44% in Q2 from 30% in Q1

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