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Hungary Sentiment Index Drops to 8-Month Low in September

Hungary’s economic-sentiment index fell to an eight-month low in September as a drop in business confidence outweighed an improvement in consumers’ outlook.

The sentiment index fell to minus 25 from minus 24.7 in August, the lowest since January, the GKI research institute in Budapest said in an e-mailed statement. The business-confidence index dropped to minus 16.4 from minus 14.9 while the consumer confidence gauge rose to minus 49.5 from minus 52.7.

“Expectations worsened by a smaller-to-larger extent in all business sectors with the exception of commerce,” GKI said.

Hungary’s economy entered its second recession in four years in the second quarter as gross domestic product shrank 1.3 percent from a year earlier. The country requested International Monetary Fund aid in November as its credit rating was cut to junk.

GKI’s indexes are calculated based on a balance of positive and negative answers to questions about the outlook for the economy.

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