K&H: Do large companies already see the light at the end of the tunnel?

By: Trademagazin Date: 2023. 04. 05. 12:18

Large domestic companies can slowly recover from pessimism. The K&H large company growth index has been moving upwards for the second quarter after last year’s low point, so it decreased from -10 to -6 points in the first quarter of 2023. The reason behind the change is that companies consider their own prospects to be much more favorable compared to the previous quarters, but they are still pessimistic about the economy. Among the companies, the index is driven up by the positive sentiment of companies with an annual turnover of over HUF 10 billion.

The K&H large company growth index, which examines the expectations of Hungarian companies with annual sales of over two billion forints for the next year, moved up again. “The K&H corporate growth index continued to rise in the first quarter of 2023, decreasing from -10 to -6 points. This is already the second quarter after last year’s low point that the index moved up. Although the indicator is still in the negative range, companies are less pessimistic, which may mean a favorable outlook for the second half of the year,” Gábor Rajna, head of the K&H Corporate Clients Division, detailed the results.

“The background to the reduction of the negative mood is that companies expect much more favorable developments in their own prospects than in the previous quarters. The company sub-index improved from -6 to -2 points, which is already approaching the positive range. On the other hand, there is still a strongly negative mood regarding the economy as a whole, the macro sub-index currently stands at -19 points”