Unchanged prospects for consumers, less optimism for business

The value of the GKI economic prospects index has only shown moderate fluctuation since August last year, falling somewhat in July. According to a survey conducted by GKI Gazdaságkutató Zrt., business expectations were somewhat more pessimistic in July than in June, while consumer expectations remained unchanged. Optimism among industrial companies has declined after its peak in May, but the value of the confidence index remains positive. Expectations regarding export orders show spectacular improvement. The competitive position of Hungarian companies in export markets also shows marked improvement. The value of the confidence index in the construction industry showed some growth in July. The confidence index showing the prospects of trading enterprises has shown strong fluctuation during the recent period. The value of the confidence index for the services sector improved in June, then fell back in July. Expectations regarding sales in the next three months were less optimistic than before, but improved in regard of employment. Consumers expect a reduction in the rate of inflation. Consumers and businesses were both less optimistic about the future in July, than a month earlier.