K&H: inflation drives the plans of large companies

By: Trademagazin Date: 2022. 07. 25. 11:55

Among the factors determining the one-year profitability plans of large domestic companies, inflation has become the most important, according to the K&H large company growth index. This has never happened before in the eight-year history of the survey. With this, the most decisive market factor so far, domestic customers, came in close second place, while supplier prices continue to play a decisive role in third place.

In the last two quarters, the role of inflation among the factors determining the future of large companies rose sharply. Thus, it has now reached the highest value in its history and has become the most important factor among the factors determining the next one-year results of large companies. The K&H large company growth index, which examines the expectations for the next 12 months of Hungarian companies with a sales revenue of over two billion forints, not only provides an answer to how the companies see their own situation and the development of the economy in the next one year. It also shows which of the factors affecting the plans of large companies are expected to have the most significant impact on their operations. In the case of inflation, there is an unprecedented rise. While in the first quarter of 2021 this was the least important element from the point of view of the companies’ profitability, by the second quarter of 2022 – just ahead of domestic customers – it became the most important factor.