Századvég: the population’s assessment of their own financial situation improved in July

By: Trademagazin Date: 2025. 07. 29. 11:44

Hungarian households reported improved perceptions of their own financial situation, and businesses experienced a more favorable business environment – according to Századvég Economic Research Institute’s July survey, released on Tuesday via MTI.

According to the summary sent to MTI, household economic expectations slightly decreased (by 0.4 index points), while business sentiment remained unchanged in July compared to the previous month. On the scale ranging from minus 100 to plus 100, the household index shifted to -19.2, while the business indicator stayed at -16.5.

The continued presence of the confidence indices in negative territory is largely due to the ongoing Russia–Ukraine war and the uncertainty caused by economic sanctions.

According to Századvég, a significant improvement in economic outlook may occur once the war ends, inflation stabilizes within the central bank’s target range (2–4%), interest rates become more favorable, the European economy strengthens, and energy prices remain consistently low.

The survey revealed that one of the sub-indices of the household confidence indicator improved: the assessment of financial situation rose from -12.8 to -11.1 points. However, sub-indices related to employment, perception of the economic environment, and inflation expectations weakened.

By age group, confidence increased by 0.6 index points among 18–29-year-olds and by 0.8 points among those over 60. Meanwhile, it dropped by 0.6 points in the 30–39 age group, by 2.3 points among 40–49-year-olds, and by 2.1 points in the 50–59 age bracket.

Overall, the 18–29 age group reported the most positive outlook, while the 50–59 age group had the most pessimistic perception.

In the business survey, two sub-indices improved and two declined in July. The business environment and economic outlook indicators rose, while the production environment and sectoral environment weakened. The most notable positive shift came from corporate expectations related to the EUR/HUF exchange rate.

By sector, confidence improved in two sectors, stagnated in one, and