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Business confidence stagnated during the month, as the outlook in industrial sectors showed moderate growth in June after a declining trend seen in the first months of the year, GKI said in its monthly report.
Confidence in the construction industry, however, declined on the month, led by the negative outlook of small and medium enterprises, and a more pessimistic view of future employment prospects. Retail sectors experienced an increase in confidence over the month, as they projected a more active procurement policy and experienced more dynamic business.
Consumer confidence was hit hardest during the month, with many consumers pessimistic both about their own financial situation and the economy as a whole. Consumers also believed unemployment was on the rise, and perceived inflation picking up during the month. The number of consumers who believed the time was right to save also declined.
Consumer confidence fell in four of Hungary's seven statistical regions. Regions west of the Danube saw consumer confidence rise, while those to the east registered declines. As a result, household confidence was highest in central Transdanubia, at -25.6, while it was lowest in the northern Plains region, at -36.0.
