Hungary economic optimism declines as GKI index falls

The Hungarian economy experienced a downturn in August, breaking a six-month trend of rising optimism. According to the GKI conjuncture index, the indicator fell by 4 points to -8, reflecting declining sentiment among both businesses and consumers.

Business confidence saw a decline of nearly 4 points, with notable drops in the industrial, construction, and trade sectors. While business services showed a slight improvement, employment outlooks weakened; 13% of companies are planning staff reductions compared to 10% in July.

Consumer confidence also retreated after eight months of growth, falling by nearly 4 points. The most significant drop was in the assessment of the country's economic situation over the next 12 months, which fell by 9 points.

On the Budapest Stock Exchange (BÉT), the BUX index closed down 0.74% at 149,646.52 points. Major stocks like OTP and Mol saw declines, while Richter was a notable exception, posting a slight gain.