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GKI consumer-business confidence index reaches year-high in July

Economic research institute GKI’s combined consumer and business confidence index rose to -17.0% in July from -19.4% in June to reach its highest level of the year, GKI said on Wednesday.

The index was still one-tenth of a percentage point under its level in July 2007. The consumer confidence index rose to -42.9% in July from -46.1% in June and 47.7% twelve months earlier. The business confidence index rose to -8.1% in July from -10% in June, but was still under its -5.3% level in July 2007.

In the industrial sector, the assessment of and outlook for production deteriorated slightly compared to June and fewer companies planned to make new hires. Stock of orders improved slightly, though stock of export orders worsened. Stock of companies’ own products fell. Confidence in the construction sector continued to improve, albeit slowly, as it has for several months.

Assessment of output improved, but stock of orders worsened. More companies said they planned new hires. Trade companies’ assessment of their market position improved slightly, as did the outlook for orders. Assessment of stocks deteriorated somewhat. After falling in June, the measure of confidence in the service sector improved in July.

Companies’ offered a poorer assessment of the last three months and reported an unchanged outlook for the coming three months. More service companies planned new hires. More industrial and building companies said they planned to raise prices. However, consumers’ inflation expectations were unchanged. Companies’ and consumers’ outlook for the state of the Hungarian economy continued to improve in July. More consumers said they could make savings in July, and fewer said they feared losing their jobs. More also said they planned to make big purchases in the future. (MTI-Econews)