Based on the May 2022 survey of the Századvég Konjunktúrakutató, the population's and businesses' sense of the economic situation has moderated: the population index, interpreted on a scale between -100 and +100, went from -7.5 to -13.3, while the value of the company indicator is -6.8 from to -8.7. The drop in the indicators is still explained by the Russian-Ukrainian war, but a significant role is played by the sanctions that have already been introduced and the sanctions imposed in connection with the ban on the import of energy carriers. There will be an opportunity for the economic sentiment to improve when the war ends and the suspension of sanctions that threaten the functioning of the Hungarian economy is also completed. The May economic survey of the Századvég Konjunktúrakutató Zrt. is available here .

 THE MOST FAVORABLE ASSESSMENT OF THE EMPLOYMENT SITUATION CONTINUES, WHICH HAS REDUCED FROM +9.7 TO +4.6 IN THE PREVIOUS MONTH.

 Households judge inflation processes most negatively, its sub-index decreased from -76.3 to -81.2. The assessment of the economic environment changed from -12.3 points in the previous month to -19.9, while that of the financial situation changed from -5.9 to -11.2.

The population became more pessimistic about the development of the economic situation in the next one year. The proportion of those expecting significant deterioration rose from 27.0 percent in the previous month to 29.7 percent, while those expecting moderate deterioration rose from 18.3 percent to 23.9 percent. After 13.2 percent in April, 14.8 percent expected an unchanged economic situation, while 16.2 percent expected a slight improvement (18.4 percent in April), and 5.9 percent expected a significant improvement (10.1 percent in the previous month).

A DETERIORATION CAN BE OBSERVED IN THE ASSESSMENT OF THE HOUSEHOLDS REGARDING THE DEVELOPMENT OF THEIR OWN FINANCIAL SITUATION IN THE PAST ONE YEAR, WHICH IS PROBABLY CAUSED BY A DEGRADED ASSESSMENT OF THE GROWTH OF INFLATION.

 While in April 10.1 percent said that their financial situation had worsened significantly, and 21.5 percent said that it had deteriorated slightly, by May these two proportions had changed to 14.9 and 24.8 percent, respectively. Similar to the previous month, 41.7 percent experienced an unchanged financial situation. A slightly improved financial situation was perceived by 14.5 percent after 20.6 percent in April, while 3.3 percent perceived a significant improvement after 4.4 percent.

The entire Origo article can be read here.

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