GKI’s business confidence index hits a nadir

Attila Udvardi
head of research
GKI

In October the GKI business confidence index decreased less than the margin of error, still it hit an almost 3-year nadir. Business expectations have been worsening since the beginning of the year, and the small improvement in October couldn’t offset the September plunge. The confidence index in the industry and commerce sectors rose, in services the increase was smaller than the margin of error, while in building and construction it dropped. Opinion improved as regards orders – although this isn’t true for export – and stock as well. The willingness to employ became smaller in the industry, but it increased in commerce and services; there was no change in the building sector. For the second month in a row, people were more afraid of losing their job. The intention to increase prices got stronger in every sector, especially in retail trade. At the same time Hungarians count on a smaller inflation rate than before. After the two-month growth, the GKI consumer index basically fell back to the July level in October. //