Hungary's Business Climate Index (UX), a gauge of sentiment at 1,500 businesses in Hungary prepared by the economic think tank GKI, measured an all-time-low 13 in the third quarter of 2008, GKI announced.
GKI calculates the index with the support of Microsoft Magyarország.
Two of the four indices that make up UX deteriorated in Q3, while the other two improved. The negative impact of government unpredictability on business activity declined compared to the previous quarter, while the effects of international developments strengthened.
An increasing number of businesses participating in the survey complained about uncertain business conditions in Q3.
The interest spread on Hungarian government bonds increased further after increasing in the previous two quarters. Hungary recorded the highest yield spread among the so-called Visegrád countries in the region, reflecting the country's unfavourable assessment.
New car sales increased in Q3 first since mid-2005 with the number of new cars in circulation increasing 5% from the second quarter and 2% yr/yr. Fresh data show, however, that the improvement was only temporary.
GKI also published its composite third-quarter Competitiveness Index (VEX) for seven countries in the eastern and central European region. The index is composed of three sub-indices measuring labor productivity, macroeconomic performance and cost-competitiveness. The index rose 0.4% in Poland, but fell in other countries - including Hungary - by 0.1%-0.6%.
Within VEX index factors, Hungary's macroeconomic index improved by 0.9% in the third quarter, while that of the Czech Republic improved by 0.7% in Q3. GKI reported slowing exports in the region. (MTI – Econews)