This is how companies see the development of their financial results
The domestic SME sector is planning slightly higher sales and profit growth compared to the beginning of the year, but expectations are still far below inflation: an average increase of 8.6 percent in revenue and 4.4 percent in real profit is likely over the next year. The latest results of the K&H SME confidence index also show that the not very encouraging financial expectations are holding back the investment intention. Currently, 6 out of 10 companies are planning development in the next year, which mainly means IT investments.
Companies do not dare to dream of large-scale sales and profit growth: this is shown by the latest results for the second quarter of 2023 of the K&H SME confidence index, which indicates the expectations of Hungarian micro, small and medium-sized enterprises for the next year. “The domestic companies expect an 8.6 percent increase in sales revenue and a 4.4 percent increase in profit. The rate of expected revenue growth has hardly changed over the past year, and in terms of profit, there has also been a small correction compared to the 3.3 percent in the previous quarter,” said Zoltán Rammacher, head of marketing and sales at K&H SME.
“After the peak in January, the rate of inflation is continuously decreasing. Most recently, consumer prices rose by 16.4 percent year-on-year in August, which means a 1.2 percentage point slowdown compared to the previous month, so we can hardly expect single-digit inflation in the coming months. In light of this, the companies’ financial expectations cannot be said to be too strong”
– added the expert.
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