Trade confidence index has increased

There was no change in the value of the GKI economic sentiment index, adjusted for seasonal effects, during August.

 According to the survey conducted by
GKI Gazdaságkutató Zrt. with support from the European
Union, the expectations of business remained the same while a very
slight change occurred in terms of consumer expectations.
In the
business sector, the confidence indices of industry and the
construction industry slightly dropped, whereas those of trade and
services increased, at a rather insignificant rate, however, in each
sector. Despite its drop in August, the confidence index of industry
still remained above its low point experienced in June this year. The
weakening was due primarily to the more negative perception of
production during the past period and the stocks of own production.
There was no significant change in the perception of the value and
composition of orders and the production outlook. Worse opinions were
delivered concerning export orders, while there was an improvement in
terms of the intentions to employ.
In 2008, the value of the
trade confidence index has increased almost without an interruption.
In August, the rating of the sales position improved slightly while
there was considerable improvement in terms of the expectations
concerning orders. Worse opinion was, however, delivered as far as
the level of stocks is concerned.
The expectations of
service-industry businesses continued to improve for the second month
in a row in August. While the expectation concerning future sales
improved considerably, a slightly more pessimistic opinion was
delivered on business during the past three months and the intentions
to employ.
Efforts to increase prices declined in industry, the
construction industry and particularly in services, whereas a
contrary trend occurred among trading businesses. There was a marked
decline in the inflationary expectations of households.
In
August, following several months of improvement, the prospects of the
Hungarian economy were considered slightly worse by respondents in
each sector compared to July, as opposed to a minute improvement in
the opinion of consumers.
Following a lowest level in April, the
value of the GKI consumer confidence index continued to increase
until July, which was followed a very slight decline, practically
stagnation, during August. The July-August indicator represents the
highest level for the past two years. In August, households’
expectations concerning their short-term savings capacity were
markedly, while those concerning their financial position were
slightly inferior to those of July. However, the fears of
unemployment declined along with the improvement of expectations
concerning costs of living.