K&H: The SME sector is not expected to be too good

By: Trademagazin Date: 2022. 10. 28. 10:28

After the downward trend so far, the confidence of the SME sector has now been shaken even more: the K&H SME confidence index, starting from the positive range never seen before, stands at -14 points with a one-time drop of 17 points. Expectations fell in all sectors and revenue categories.

SME’s are facing a tough future

In the third quarter, the K&H SME confidence index, an indicator indicating the expectations of Hungarian micro, small and medium-sized enterprises for the next year, fell from 3 points to -14 points.

“The domestic and global economic events of recent months have severely damaged the future prospects of the SME sector. Although we are seeing a downward trend for the fifth quarter, the index has never fallen so much from the positive range in one quarter. The current shift is one of the largest declines in the 18-year history of the index, the index was lower than this only before 2015. True, the current value is still much higher than the result of -44 points reached at the end of 2011, and the rate of decline is also smaller than the 25-point drop in the negative range in 2008. The main reason for the current fall is that businesses expect higher tax burdens, negative financial results and a worsening of the labor market situation and the competitive situation”

Zoltán Rammacher, head of K&H SME marketing and sales support, summarized the results.

K&H