Lower demand is now a bigger problem in certain sectors than labour shortage

By: Trademagazin editor Date: 2022. 12. 22. 10:24

In October GKI’s economic sentiment index has been decreasing for six months, but this time the plunge of the consumer confidence index wasn’t the main reason: the big drop in business expectations was the engine of the negative trend.

According to research by GKI Economic Research, consumers are more pessimistic now that they were back in the spring of 2020, when the Covid-induced panic started.

For companies in the industrial and services sectors, the low level of demand was already a bigger obstacle to growth than the labour shortage. Almost 70% of companies in the industrial and retail sectors plan to increase prices. The last time GKI’s consumer confidence index was this low was in October 2012. Hungarians are more and more pessimistic about their own financial situation. //