Economics
Unorthodox Economics Gets Sentiment Wake-Up Call in Hungary
- Index drops as business confidence at weakest since 2013
- Lack of private investment hinders expansion, analyst says
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The Hungarian government’s message that unconventional policies will kick start growth doesn’t seem to be getting through to businesses and their customers.
Economic sentiment slumped in August, compounding mixed readings for industrial production and raising the risk that output will undershoot the government’s full-year forecast. The overall sentiment index dropped to negative 3.9, from zero in July, while the business gauge slipped to 1.2, the lowest since November 2013, the GKI research institute said in an e-mail Monday. The consumer-confidence index also fell, declining to minus 18.6 from minus 16.1.