GKI’s economic index decreased slightly in February, but business and consumer expectations also remained more favorable than at the end of last year, writes MTI following the announcement of GKI Economic Research Ltd.
According to an EU-backed survey, the business cycle index stood at minus 17.6 points in February, deteriorating slightly from minus 16.3 points in January.
The economic index worked just over half of its fall in April last year by February; within this, about 60 percent of the business confidence index and only 40 percent of the consumer.
In the business sector, the expectations of industrial and commercial companies were worse in February, while those of construction companies, and especially service companies, became slightly more favorable. The service provider confidence index rose for the third month in a row in February and returned to its level at the end of last summer.
Following a slight rise in January, the trade confidence index fell more sharply in February, according to economic research.
The employment propensity of the business sector did not change in February, and there are minimally more people planning to expand the number of employees than those expecting to reduce it, GKI indicated. People’s fear of unemployment, which has been growing for months, eased slightly in February, but the population remains most concerned about it.
According to GKI, the drive for price increases strengthened in all sectors except the construction sector, where the strong strengthening in January was followed by unchanged in February, as well as consumer expectations of inflation.
Among companies, the assessment of the future of the Hungarian economy is now more and more favorable for the third month in a row – the economic researcher pointed out that the opinion of the population is improving in this respect for the second month.
The GKI consumer confidence index fell in February, after improving in January, to a lesser extent but deteriorating, from minus 33.8 points to minus 34.9 points.
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