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March 11th, 2010

Outlook of big companies worsens slightly in February, research shows

The outlook of Hungary’s biggest companies worsened slightly in February, while that of SMEs continued to improved, the latest measure of confidence by economic research institute Ecostat shows.

Ecostat’s TOP-100 measure of confidence at the country’s biggest hundred companies fell 2.3 percentage points to 69.5pc in February compared to January. The SME confidence index rose 5.4 percentage points to 73.2pc.

In January, both indices rose slightly.

Among big companies, 21pc said output rose in the previous three months, while it fell for 35pc. About 30pc expect production to grow in the next three months and 48pc see it staying unchanged.

About 27pc of big companies expect domestic demand to grow and 39pc see demand on export markets rising. Two-thirds said stock levels were average for the time of year. The percentage of companies planning investments fell to 40pc in February from 43pc in January and 51pc in December.

More than half of big companies said current staff levels were appropriate. One-third planned layoffs.

Among SMEs, 17pc said production grew in the past three months and 47pc said it fell. About 38pc expect output to grow in the coming three months and 42pc see it stagnating.

About 28pc expect demand on the domestic market to increase and 45pc see demand on foreign market stagnating.

About 60pc of SMEs said staff levels were appropriate but 23pc said they could make layoffs.

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