Large companies are resistant to economic uncertainty

By: Trademagazin Date: 2024. 07. 16. 11:54

Restrained expectations characterize the domestic corporate sector for the next year. The K&H large company growth index decreased from -2 points to -4 points in the second quarter, thus it has been on a downward trajectory for a year. A double effect can be seen behind the result: while pessimism can be observed regarding the economic prospects, they see their own situation much more favorably.

Compared to the results of the first quarter, the K&H large company growth index decreased by another 2 points, so it currently stands at -4 points. The index indicating the expectations of domestic companies with an annual turnover of over two billion forints has thus been on a downward trajectory for the fourth quarter.

“The latest results show a slight negative shift, there is no major deterioration in any of the factors determining the operation of the companies, nor is there any improvement. The optimism that started in the second half of 2022 has disappeared, and the sector is currently characterized by a kind of listlessness and anticipation. At the same time, the results also show that expectations regarding the economic outlook drag the index down, as the companies’ outlook regarding their own situation is still positive.”

– explained the results Péter Hodina, head of the K&H Corporate Banking Sales Department.

Company managers primarily forecast the deterioration of the economic situation within a year, as the percentage of companies expecting this jumped from 43 to 52 percent. However, this pessimism cannot be experienced in the 3-year period, where the vast majority of companies (86%) expect stagnation or improvement.
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