The mood of Hungarian SMEs has improved dramatically

By: Trademagazin Date: 2026. 01. 16. 11:50

🎧 Hallgasd a cikket: Nyelv: Sebesség: 1.05×

Expectations of the domestic SME sector have improved significantly by the end of the year – this is revealed by the research conducted by K&H’s SME Confidence Index in the fourth quarter of 2025, which presents the segment’s economic expectations based on the responses of 400 domestic small and medium-sized enterprises. The value of the confidence index increased by 10 points compared to the previous two quarters, so it currently stands at -4 points.

The confidence index increased significantly by the end of 2025. According to the research data, a visible improvement can be seen in the entire sector, both by company size and by sector. By size, the expectations of companies with the largest sales revenue are the most optimistic, with an increase of almost 20 points, their index value has already turned into the positive range, reaching 4 points. A similar improvement in sentiment can be seen in the case of smaller companies: an average increase of 13 points can be observed – thus, companies with sales revenue of 20-100 million forints are at -7 points, and companies with revenue of 101-300 million are at -2 points. A positive change is also evident when broken down by sectors and regions. The most optimistic are the representatives of the service sector, where a 14-point increase in expectations can be observed, followed by agriculture and industry with 8 points each, and trade with 2 points.

Improving mood, invigorating plans

“The positive movement of the confidence index indicates that after a period of waiting and cautious reactions, the balance is tipping in a more optimistic direction”

– Zoltán Rammacher, Marketing Manager of the K&H Retail and SME Segment, commented on the data.

“If the current positive mood continues to strengthen, we can see more investments and developments in the coming years as a result. As a committed partner of the SME sector, K&H is doing a lot to ensure that innovative provide financing solutions for businesses, and with its digital solutions, ensure faster and easier banking for retail customers as well as SMEs.”

The figures may have been favorably influenced by several economic and economic policy factors. The announced Corporate Tax Reduction Package may leave companies with a total of 80-90 billion forints, reducing tax and administrative burdens, while there is also significant interest in the fixed 3 percent interest loan program. The increased investment limit in the Demján Sándor Capital Program and measures affecting the retail side may also contribute to improving expectations. The news of the negotiations on the extent of the minimum wage increase also indicates that adapting to costs is an important aspect for businesses, so overall it may appear as a cautious but positive turn in the development of the confidence index.