GKI’s economic sentiment index improves further

The GKI economic sentiment increased again in January 2018, having reached a historic peak at the end of 2017. This January the business confidence index only rose within the margin of error, still it climbed higher than ever before. This rise was the result of service providers’ great optimism – businesses in the industry and building/construction didn’t become more optimistic, while enterprises in retail trade turned a little less optimistic. Service providers’ expectations about future sales grew, and their capacity utilisation was high at 90 percent. Willingness to employ increased in all sectors but retail trade, but at the same time people started worrying more about losing their job. Companies say the main obstacle of expansion is the lack of workforce. Consumers’ inflation rate expectation was also up a little. As for the future of Hungary’s economy, the opinion turned more positive in all sectors but retail trade and among consumers. GKI’s consumer confidence index dropped a little in January (after a major growth back in December 2017). //

Attila Udvardi
GKI