K&H: After the ups and downs of the past 2 years, optimism can now come

By: Trademagazin Date: 2023. 06. 30. 12:52

The K&H large company growth index moved up again, increasing from minus 6 points to 0 points. The indicator thus crossed the border of the negative range after 4 quarters. The improvement is due to the fact that companies see their own prospects as positive again after three quarters of a year, while the negative expectations in the assessment of the economy have also decreased significantly. The index is driven up by the optimistic mood of the smallest companies with annual sales between HUF 2-3.9 billion, but the expectations of companies with higher annual sales are still in the negative range.

The mood of the companies continued to improve, thus leaving the negative range of 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. The past two years have been a huge ups and downs for companies, which can also be traced in the K&H large company growth index. It is therefore encouraging that the indicator strengthened significantly in the second quarter of 2023, from -6 points to 0 points and left the negative range behind. The average value of around 8 points before the coronavirus is still a long way off, but the continuous improvement following last year’s low point (-15 points) can give cause for confidence that the index will once again return to the positive range. The rise is due to the fact that companies are again positive about their own prospects after three quarters. The company sub-index jumped from -2 to 5 points, which is the best result of the past year. At the same time, the negative mood in the assessment of the state of the economy also decreased significantly, the macro sub-index improved from -19 to -13 points.