In August, the GKI economic index rose to a five-month high

By: Trademagazin Date: 2023. 08. 28. 13:02

According to a survey conducted by the GKI Gazdaságkutató – with the support of the EU – Hungarian residential and business expectations improved noticeably in August, so the GKI economic index reached a five-month high. In the eighth month of the year, the companies’ relatively favorable employment and price increase intentions did not change significantly compared to July.

The GKI business confidence index – after July – also rose modestly in August, but the big fall in June was still not recovered. In the last summer month, the sectoral outlook improved, with the exception of the construction industry. In industry, the evaluation of the last three months’ production became more favorable, the evaluation of the order stock did not change, while that of the stocks became more favorable and the production prospects also noticeably improved. In the construction industry, on the other hand, satisfaction with the production of the previous three months and the assessment of order stocks also deteriorated significantly. In trade, the assessment of the sales position became less favorable, the assessment of the order stock became better than the previous month, and the respondents also reported on unchanged stocks. In the service sector, the overall business performance has deteriorated, but turnover expectations for the near future have slightly improved. The most pessimistic sector at the moment is clearly the construction industry, but trading companies are also quite pessimistic.

The mood of the population improved continuously during the summer months, as a result of which the GKI consumer confidence index reached its 16-month high in August. In the eighth month, all the indicators that make up the consumer confidence index changed in a positive direction. The evaluation of the development of one’s own financial situation over the past 12 months and the expectation for the next 12 months both improved substantially. The perception of money that can be spent on high-value consumer goods has also become more favorable.

The employment willingness of businesses improved slightly in August, the proportion of those planning to lay off and increase the number of employees was essentially the same. The doomsayers are in the majority in industry and the construction industry, while the doomsayers are the majority in commerce and the service sector. The population’s fear of unemployment changed only within a margin of error compared to July.