More optimistic households

The complex Consumer Confidence Index of Gfk Hungária and Corvinus University improved by four per cent in the first quarter of 2008. Expectations regarding financial position next year were up by 10 per cent, while willingness to purchase durable consumer goods increased by 7 per cent. The number of consumers who believed that their real income would increase by less than the inflation rate was down by 7 per cent. Expectations regarding unemployment also show some improvement compared to December 2007. Expectations regarding interest rates for loans are more pessimistic than three months ago. Nine out ten people interviewed expect prices to rise. The expected rate of inflation is 10.4 per cent this quarter, compared to 8.9 per cent expected last summer. 9 per cent of households believe that their real income will increase by more than the inflation rate, while 25 per cent expect their income to grow at the same rate as inflation. 21 per cent of the people interviewed had no savings, while 46 per cent did not believe this to be the right time to use up their savings. 53 per cent of the sample would never apply for a loan. 55 per cent of the sample believed this to be the right time for buying large domestic appliances, whereas this percentage was only 51 in December. More people were planning to buy a car, than in the preceding quarter. Increasing willingness to purchase is linked to more favourable payment conditions.