K&H: Domestic SMEs cannot exploit inflation

The retail turnover is growing less and less from month to month

Compared to the previous quarters, domestic companies expect lower sales growth. According to the latest results of the K&H SME confidence index research, which examines the expectations of micro, small and medium-sized enterprises for the next year, they expect an average annual sales increase of 8.3 percent, which falls short of the 12.1 percent expected in the previous quarter. With the exception of the 2008 crisis, there has never been an example of such a decline in one quarter in the history of the index.

“The expected sales growth trend of more than 10 percent typical of the past year has come to an end. This is presumably due to the fact that SMEs are already expecting a decrease in turnover due to the ever-higher inflation. According to the MNB’s latest forecast, the rate of annual inflation this year could be 13.5-14.5 percent, which could significantly reduce the growth of SMEs in real terms, while the retail turnover is growing less and less every month”.

– said Zoltán Rammacher, head of K&H SME marketing and sales support.