K+H Big Business Growth Index Rises in Q2

K+H’s large company growth index improved to 9 points in the second quarter from -3 points in Q1, Tibor Bodor, K+H’s corporate division said on Monday presenting the lender’s report.

The macroeconomic subindex jumped 31 points in one quarter to a record high of 17 points.

The corporate subindex increasing by 5 points to 6 points. The last time the subindex was at this level was in Q3 2023.

The significant improvement of the headline index number was driven primarily by the surge in confidence in the new government's economic policy, Tibor Bodor said and noted that this may be reflected in companies' developments and investments in the coming period.

Large companies expect an improvement in the economic situation in both the short and long term. Some 65% of companies expect improvement in the next 12 months and 76% in the next three years.

Around 37% of large companies expect the forint to strengthen in the next six months, and 38% say the exchange rate will not change.

Respondents predict an average revenue growth of 1.8% for the next year, with optimism particularly strong among medium-sized companies.

At the sector level, the most optimistic area is trade, followed by industry and the service sector.