K&H Innovation Index Hits All-Time High

Not only did the K&H Innovation Index rise to a historic high of 33 points, but 47% of responding companies in the medium- and large-enterprise sectors viewed their own prospects optimistically, and they see the country’s outlook even more favorably: nearly two-thirds expect an improvement, the bank told MTI on Monday.

According to a survey conducted by K&H Bank among Hungarian companies with net revenues exceeding HUF 300 million, 42% of firms expect their own prospects (revenues, profits, investments) to improve somewhat, while 5% expect them to improve significantly. 47% do not expect any change, while only 5% anticipate a decline.

Optimism is particularly high among companies that consider themselves leading innovators in their own sectors: 56% of these companies believe their own outlook will improve somewhat, 6% expect a significant improvement in their company’s situation, and only 1% anticipate some deterioration.

Companies are even more optimistic when it comes to the country’s economic outlook: a total of 63% expect a favorable turnaround, with 54% anticipating a modest improvement and 9% expecting a significant improvement. Optimism is highest among companies in western Hungary: 73% are confident that the country’s economic situation will improve. 29% believe Hungary’s economic situation will remain essentially unchanged, while 6% expect it to deteriorate. The same level of optimism is evident among companies that consider themselves innovators: 71% of them expect a significant or at least some improvement in the country’s economic situation, and none of these companies anticipate a deterioration.

This optimism is also reflected in the most important component of the K&H Innovation Index: planned innovation rose by 8 points over the past six months to 29%, the second-highest value in the index’s more than five-year history.

K&H has been publishing the Innovation Index since 2021. The first data collection for 2026 took place between April 14 and May 6. The survey interviewed, via telephone, representatives responsible for innovation at 360 medium and large companies with annual revenue exceeding HUF 300 million.