MNB Business Sentiment Index Slightly Up

The business sentiment index regularly measured by the National Bank of Hungary (MNB) rose to -8 points from -10 in the previous month, the institution has reported on its website.

The current situation index rose from -28 to -23 points in May, while expectations fell from +9 to +7 points, the lowest in 5 months. Average capacity utilization and revenue levels also increased compared to May, from 90% to 91% and from 94% to 97% respectively.

The index for investment plans fell to +24 points from +36 points in the previous month. The sub-index for staff expansion plans remained positive and improved from +2 to +5 points in May. The perception of the current situation improved in most of the groups surveyed, but expectations weakened to their lowest level in seven months among large companies in June.

It is also stated that the monitoring of the current economic situation and future expectations of the domestic corporate sector is of paramount importance for the central bank to carry out its core tasks. To this end, the MNB has been conducting a monthly business survey since December 2020 onwards, mediated by commercial banks and business sector interest groups, which provide more detailed and direct feedback on the situation and prospects of economic agents than aggregate statistical data.

The MNB's Business Climate Index is calculated by taking into account both the current situation and the perception of expectations, and provides a single indicator of the business climate in Hungary.