Investment appetite among large Hungarian companies remains stable

According to the latest research data from the K&H Large Company Growth Index, the most popular investment areas – of which those planning development mention more than one on average – continue to be production machinery (22%), IT (20%), and digitalization and innovation (15%), followed by automotive developments (13%). In comparison, fewer companies are planning real estate development or quality assurance investments.

The change in the composition of investment plans is that the proportion of efforts aimed at digitalization and innovation, which were previously at the forefront, has decreased by 10 percentage points. A 4 percentage point increase can be observed in production machinery, while the proportion of developments aimed at vehicles and IT projects was both 6 percentage points lower.

“Companies’ investment intentions are stable, they are preparing for the year ahead with cautious optimism. Although the proportion of digitalization and IT developments has slightly decreased, these areas remain key to maintaining long-term competitiveness – and K&H is committed to supporting the development of economic actors. The level of development activity shows that companies are consciously planning their investments with cost-efficiency and sustainable growth in mind”

– highlighted Tibor Bodor, Head of the K&H Corporate Business Unit.

With the development of technology, digitalization and data-driven operations can increasingly represent a serious competitive advantage for large companies, so more and more are looking for financing structures with which they can flexibly implement innovative developments. This is further confirmed by the fact that although some areas are preparing more cautious development plans for the coming period, the big players are not completely abandoning developments.