K&H: This year, companies’ sales may increase above inflation

By: Trademagazin Date: 2024. 02. 16. 12:27

Compared to the previous ones, the companies expect a slightly more modest increase in sales of 7.2 percent, but at the same time a stable increase in profit of 3.8 percent. With this, the rate of expected income growth finally exceeds the rate of expected annual inflation after a long time – it is clear from the K&H SME confidence index survey. With such financial expectations, 6 out of 10 companies are planning some kind of development this year: mainly IT and company car purchases are expected, but machinery investments will be significantly reduced.

This year, the sales revenue of companies may increase again above the expected annual inflation, according to the latest survey of the fourth quarter of 2023 by the K&H SME Confidence Index, which indicates the expectations of Hungarian micro, small and medium-sized enterprises for the next year. The companies are currently planning a 7.2 percent increase in sales revenue and a 3.8 percent increase in profit in the year ahead. With this, the downward trend in the dynamics of revenue growth continued, while profit expectations practically did not change compared to the previous quarter.

“According to the latest data from the KSH, in December 2023, consumer prices were on average 5.5 percent higher than a year earlier. With this, after more than a year, the dice have turned, the expected increase in sales again exceeds the expected annual increase in consumer prices, which, according to the MNB’s forecast, is expected to be in the range of 4.0-5.5 percent this year.

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