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GKI confidence index declines for third consecutive month in July

Economic think-tank GKI's combined monthly index of business and consumer confidence in Hungary prepared jointly with Erste Bank dropped for the third consecutive month in July, falling to -16.0 this month from -13.9 in June, -13.2 in May and -9.1 in April, GKI reported on Sunday evening.

GKI's sub-indices of business and consumer confidence also declined for the third consecutive months in July, with the business sub-index falling to -6.9 this month from -4.4 in June, -4.3 in May and +0.6 in April and the consumer sub-index falling to -42.0 this month from -41.0 in June, -38.5 in May and -36.8 in April.

GKI's main index and two sub-indices last rose in April.

Within the business sector, the outlook among industrial and construction companies deteriorated substantially in July, while those among retail and service companies improved, though to a lesser degree.

The assessment of recent and future production among industrial companies declined significantly in July, and the order stock also deterioated, particularly in ter of foreign orders.

The opinion on inventories did not change. The period covered by orders slightly fell from three months earlier.

The confidence index in the trade sector rose in July but was still below its May level. The sales position deteriorated slightly but trade companies were more optimistic about inventories and orders than before.

Expectations slightly improved in services after no change for several months.

The intention to hire new employees declined among industrial and construction companies in July, while that among retail and service companies increased during the month.

The intention to raise prices among industrial and construction companies was unchanged in July, while that among retail and service companies declined during the month.

The outlook with regard to Hungary's economic situation as a whole deteriorated somewhat among industrial companies in July, though improved somewhat among retail and service companies, particularly the latter, during the month.

Among households in Hungary, the outlook with regard to Hungary's economic situation as a whole, the assessment of overall financial condition and the possibility to save money as well as the intention to purchase durable consumer-ite all declined in July, while the fear of unemployment rose during the month.

Inflationary expectations declined among households in Hungary in July.