In February the seasonally adjusted consumer confidence index of GKI representing economic expectations of households increased further significantly. The value of the index, which is calculated on the basis of survey carried out by GKI Economic Research Co. (www.gki.hu) with the support of the European Union started to increase around the middle of 2005 and since 2002 it hasn't been so high as now.
In February households considered their own financial situation to be somewhat better than in January and expected significant improvement in the next 12 months. They considered the economic situation of the country to be perceptibly better than in the previous month and expected further improvement during the coming one-year period. Their inflationary expectations remained basically unchanged compared to January but they expected palpable increase in the pace of price increases in the coming twelve-month period. Their unemployment expectations improved a little. Consumers propensity to purchase somewhat declined compared to the previous month but their expectations for the next twelve months project significant improvement. The share of those deeming it was a proper time to save increased markedly and an increasing number of consumers thought that they would be able to save in the coming one-year period.
Consumer expectations improved in all seven regions of Hungary. Consumer confidence improved much more than the national average in the South Great Plain and South Transdanubia, while in Northern Hungary it increased at the same pace as the national average. The confidence of the households in Middle Hungary, Northern Great Plain, Middle and Western Transdanubia improved to smaller extent than the national average.
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