K&H’s Large-Cap Growth Index Declined in Third Quarter

K&H’s Large-Cap Growth Index stood at 5 points in the third quarter compared to the previous three months, down from 9 points in the second quarter; despite this correction, optimism in the corporate sector remained high, Tibor Bodor, head of K&H’s corporate division, said on Monday in Budapest at a press conference presenting the report.

According to K&H’s on-site statement, the initial, exceptionally high survey results following the parliamentary elections have moderated somewhat, but expectations in the domestic large-corporate sector remain in positive territory. The correction is a natural market reaction following the record results of the previous quarter, Tibor Bodor noted.

The macroeconomic sub-index corrected slightly following its previous historic high of 17 points; even at its current value of 10 points, it has still reached the second-highest result on record.

The corporate sub-index, which summarizes companies’ outlooks on their own performance, stands at 3 points; its stability confirms that, despite the changes, economic actors are generally optimistic about the coming period.

Analysts examining investment willingness found that 44% of the surveyed companies do not plan to invest in the coming year. Those that do, however, intend to focus on areas such as digitalization, information technology, and the purchase of production machinery.

Dávid Németh, a senior analyst at K&H, said that after several years of continuous stagnation, the Hungarian economy is expected to grow in 2026, with growth likely reaching 1.7% overall this year.

He pointed out, however, that the Hungarian economy’s performance is being held back by low levels of investment, which could be offset by household consumption. This trend, however, has a downside: since the country continues to source a vast number of products from abroad, the growth in imports far exceeds that of exports.

Dávid Németh believes that EU funding could spark a recovery in investment, and he therefore forecasts economic growth of 2.4% in 2027 and 2.8% in 2028.