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GKI business-consumer confidence index rises again

GKI's combined business-consumer confidence index rose for a second consecutive month in June, economic think-tank GKI announced on Wednesday.

The index, prepared with the support of the European Union, dropped every month from October of last year until March of this year, then stagnated in April.

Confidence regarding the prospects of the Hungarian economy impoved in the industrial and trade sectors as well as among households in June, while declined in the construction and service sectors during the month.

The outlook of the business sector and among consumers improved to its highest point of 2009, though remained still very pessimistic.

The industrial sector confidence index rose for a third consecutive month in June, as the assessment of recent operations as well as the outlook for the coming period, including orders improved.

Confidence among trade companies also improved for the third consecutive month in June. Confidence in the service sector, in contrast, declined somewhat in June after rising significantly in May.

Industrial companies do not expect a substantial change in prices, while fewer companies operating in the construction sector prepared to cut prices than before. Trade companies and consumers expect, however, prices to rise to a greater degree than previously as a result of tax hikes.

Industrial and construction companies reported a greater inclination to make new hires in June, while service sector companies reported a decreased intention to make new hires. Fear of unemployment decreased significantly among Hungary's households in June.

After a May rise the GKI consumer confidence index rose again in June, when households became somewhat less pessimistic regarding their financial situation and short-term ability to make savings. (MTI-Econews)