K&H: Can the optimism of SMEs return in 2024?

This year was a year of stabilization for SMEs. This is shown by the fact that the K&H SME confidence index, which indicates the expectations of Hungarian micro, small and medium-sized enterprises for the next one year, has moved in a relatively small range, between -14 and -5 points, after the hectic movement of the past 2-3 years.

“The index, which has been in the negative range since the third quarter of 2022, improved by 5 points in the last quarter, so it currently stands at -6 points. The positive shift is mainly due to the fact that businesses are positive regarding the assessment of economic policy, the expected change in corporate loan interest rates and the labor situation for 2024”

– informed Zoltán Rammacher, marketing and sales manager of K&H SME.

Confidence can be seen in all three revenue categories: the largest companies with an annual revenue exceeding HUF 300 million are still the most optimistic with 8 points, compared to 1 point in the previous quarter. However, the confidence of smaller companies is still in the negative range. The expectations of companies with a turnover between HUF 100-300 million are the same as the index average (-6 points), while the expectations of micro-companies that do not reach HUF 100 million are at -10 points. However, in both cases this is a positive shift after the previous quarter’s result of -13 points.