Business, Consumer Confidence at Two-Year High in April

Economic research institute GKI's combined gauge of business and consumer confidence reached a 27-month high in April, chief researcher Raymund Petz said on Thursday.

The index rose to -10.7 points in April from -13.9 points in the previous month, data published on GKI's website show.

Petz noted that the survey for the gauge was conducted in the first half of the month and reflected expectations ahead of the April 12 election rather than the contest's outcome.

GKI's business confidence index rose to -8.5 points from -11.9 points, supported by improving sentiment in the commerce sector. Companies in business services were the most optimistic, while construction sector businesses were the most pessimistic.

Around 8% of companies plan to make new hires, while 11% expect to reduce headcount. Some 35% of companies want to raise prices and just 5% see price cuts in future.

GKI's consumer confidence index improved to -17.0 points from -19.5 points.

The consumer confidence index was over the average for the period 2019-2026, researcher Attila Udvardi said. Outlooks for the economy are improving among households, but assessments of their own financial situations, ability to make savings and plans for big-ticket purchases have changed little over the past two years, he added.