GKI sentiment index fall

The confidence index of trade dropped notably in January 2008, but it has been increasing since February. In March the projection of sales and the expectations on future orders improved, but the projection of the average level of inventories increased.

 In March the seasonally adjusted GKI
Economic Sentiment Index declined slightly. The survey of GKI
Economic Research Co. (www.gki.hu) – supported by the European
Union – indicates that expectations dropped somewhat in the
business sector and consumer expectations fell significantly.
In
the business sphere, the expectations of the industrial sector and
services–that were quite optimistic before–deteriorated a little,
whereas those of construction and trade that were rather pessimistic
have improved.
The confidence index of services decreased in
March. The evaluation of the general state of business over the past
three months has not changed, but expectations on employment and on
future turnover deteriorated compared to the previous month.

Intentions to raise prices declined in industry, trade and
services, but there was an increase in industry compared to February,
that equals to last year’s plans. The inflationary expectations of
consumers increased as well. The assessment of the outlook for the
Hungarian economy stagnated in industry and trade, it improved in
construction but it deteriorated in the service sector in general and
among consumers in particular.
The GKI consumer confidence index
stagnated in the first two months of 2008 and it dropped
significantly in March. Household expectations concerning their own
financial position deteriorated slightly, but they are still higher
than a year ago. The assessment of consumers on their short-time
savings capabilities deteriorated compared to the previous month and
to the same months of the previous year. Compared to February,
expectations on unemployment also changed negatively.