Hungarian business confidence remains high despite moderate cooling

The K&H corporate growth index indicates that while business optimism in Hungary has moderated following a post-election peak, confidence remains high. The macroeconomic sub-index corrected from a historical high of 17 points to 10 points, marking the second-highest level in the 12-year history of the survey.

Large corporations, specifically those with annual revenues exceeding 10 billion HUF, show the strongest growth prospects, with nearly 40 percent expecting significant revenue increases over the next year. In contrast, the trade sector saw a notable 12-point decline in its macro indicator compared to the previous quarter, while the service sector remains positive across both SMEs and large enterprises.

Key factors influencing business operations have shifted; exchange rate fluctuations, supplier prices, and domestic customers are now cited as the primary drivers, overtaking government economic policy in importance. Despite the positive outlook for GDP and revenue, analysts note that investment intentions and credit demand have not seen a significant turnaround, with a major investment shift potentially delayed until 2027 when EU funds are expected to return.