The trade confidence index came to halt

According to the survey conducted by GKI Economic research Co. (www.gki.hu) with the support of the European Union, the trend of business expectations remained unchanged.

 In September,
the confidence index of industry dropped significantly and thereby
the strong deterioration that had been pronounced throughout the
whole year in line with European trends continued. There was a more
negative perception of production, the stock of orders – mainly
that of export – and the stock of own production during both the
past and the future period. Meanwhile intentions to raise prices
declined somewhat and there was a slight improvement in the
intentions to raise employment.
In construction the moderate and
fluctuating improvement of the confidence index continued in
September just as it was typical earlier this year. The expectations
of firms concerning production did not change, while the assessment
of orders and the intentions to increase employment improved notably.
Their intentions to raise price are higher than one month and one
year ago.
The trade confidence index that had increased almost
without an interruption this year came to a halt in September, and
even deteriorated with a minimal extent. Expectations concerning
orders improved slightly while the assessment of stocks deteriorated
compared to August. The expected average price rise for the next
three month changed insignificantly.

The expectations of
services have been improving for months and those concerning future
sales, business and intentions to employ improved in September.
In
September the prospects of the Hungarian economy were considered
significantly worse by respondents from industry and construction
compared to the previous month, the opinion of trade did not change,
while it improved in services. In this relation, consumers became
more pessimistic as well.
In July 2008, GKI consumer confidence
index got out of the strong pessimism that was typical for two years
(even if to a small extent), and since then it has remained basically
unchanged. In September households’ expectations concerning their
financial position were markedly higher, and their inflationary
expectations declined notably as well. The assessment of short-term
savings capacities remained unchanged.