The GKI economic index has been falling for more than half a year now

By: Trademagazin Date: 2022. 11. 28. 00:07

The business confidence index decreased somewhat further in November after the big drop in October. On the other hand, consumer sentiment improved slightly, although it remained more gloomy than the terrible pessimism of September.

Consumer sentiment deteriorated

According to a survey conducted by GKI Gazdaságkutátó – with the support of the EU – business expectations were similarly negative in the covid period of early 2021. And consumers are still more pessimistic than they were in the spring of 2020, during the panic caused by the Covid epidemic. The good news, however, is that the business sector’s willingness to employ has slightly strengthened, its desire to raise prices has weakened, while consumers’ fear of unemployment and inflation expectations have also changed in a favorable direction.

In November, in the business sphere, mainly the industrial confidence index, but also the construction industry confidence index decreased, while the expectations of service and trading companies improved. The latter can be considered a correction of the great deterioration in October. The business confidence index entered negative territory four months ago, meaning that there were more pessimistic than pessimistic companies. The index has continued to decline ever since.