Expectations reaching lowest point ever

The conjuncture index of GKI has been falling for the fifth consecutive month. According to a survey conducted by GKI Gazdaságkutató Zrt., the deterioration in business expectations speeded up in February, compared to January, but that of consumer expectations slowed down. Within the competitive sector, the deterioration of the industrial confidence index stopped in February, but it is too early to talk about a reversal of the trend. Employment prospects in industry also deteriorated in February. The confidence index of the construction sector showed a substantial drop in February. The confidence index of the retail sector had showed some improvement in January, but this did not continue in February, dropping back to the level recorded in December. The confidence index of the services sector continued to drop in February. Expectations regarding economic prospects continued to deteriorate in all sectors and among consumers as well. The consumer confidence index of GKI has been deteriorating continuously since October 2008, but deterioration slowed down in February. Anxiety among consumers regarding price rises increased. The consumer confidence index is calculated on the basis of expectations regarding the economy and the purchase of durable goods of substantial value. The business confidence index is based on the expectations of the different sectors regarding future business. The conjuncture index of GKI is calculated on the basis of the consumer and business confidence indexes as an average value.