Business, Consumer Confidence Improve in July

Business and consumer sentiment in Hungary improved in July, a monthly gauge by economic research institute GKI shows.

GKI's business confidence index rose by three points and the consumer confidence index climbed by two points, edging into positive territory, chief researcher Raymund Petz said.

He acknowledged the advance of the business sentiment index in April, but said confidence levels were still under the long-term average. The sub-index for confidence in the industrial sector climbed by eight points in July, to reach a four-year high, while the gauge in the construction sector slipped two points, he added.

The sub-index for the commerce sector was practically flat and the one for business service companies slipped four points, he said.

The predictability of the business environment remained virtually unchanged in July compared to the previous month. Industrial respondents overall felt the environment was more predictable than in June, while construction companies reported a deterioration in this area.

The price indicator , which shows the expected development of companies’ selling prices over the next three months, also declined in July after May and June , falling to an almost two-year low. In the next three months, 26% of companies plan to raise prices, while 8% are preparing to cut prices – compared to 21% and 7% in June.

GKI's survey showed 10% of companies plan to reduce headcount in the coming three months and 8% want to make new hires.