After a nearly one-year continuous decline, the economic confidence index of
Hungary’s
GKI-Erste has risen for the second month in a row in March. The seasonally
adjusted index stood at -19 points, up from -22.5 pts, back at end-summer 2011
levels.
The survey, conducted by GKI Erste with EU support, shows
that the consumer confidence index rose to -49.9 points in March from -51.2 pts
in Feb. The business confidence index went up to -8.1 pts from -12.4 pts.
Within the business sphere pessimism has declined in every sector, GKI
said in a statement on Thursday. In the industry the evaluation of past
production levels and orders has improved, while - within this category - the
assessment of exports has not changed. The outlook on production levels has
also bettered.
Meanwhile, investment plans for 2012 are less ambitious than they were
for 2011. In the construction sector the evaluation of the production level in
the past three months worsened some, but the assessment of orders has
practically stagnated and intentions of employment firmed considerably
compared to a month ago.
The biggest rise in the confidence index was recorded at services
companies. The assessment of the stock of orders and especially of the state of
business has improved, while the respondents assessed their stock of goods as
slightly declining. The services companies had a brighter view on both their
future turnover and state of business.
The intentions of employment firmed markedly in all
but the trade sector, and firms planning staff expansion already outnumbered
those expecting downsizing in the industry. Meanwhile, the population’s fear of
unemployment has increased.
Intentions to raise prices decreased considerably among trade companies,
and the average size of the planned price hikes also moderated.
Consumers’ inflation expectations eased some since the last poll. After hitting
rock bottom in January, the assessment of the perspectives of the Hungarian
economy improved a lot in every segment and also among consumers for the second
month in a row.
The GKI consumer confidence index rose again in March (after February)
following a nearly persistent decline that lasted for almost 18 months, but the
improvement was not as pronounced as in the business sphere. At the same time
consumers assessed their future capacity to save less positively than last
month. They believe their situation to buy high-value consumer durables has
improved some, but project considerable worsening in this respect in the
following 12 months.
Source: www.portfolio.hu/en
