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Investment mood drops in Hungary, K&H index shows

Only 39% of big companies are planning to invest in Hungary, according to the Large Enterprise Growth Index of K&H Bank, while the ratio was above 50% in previous years, according to Hungarian online news portal

Enthusiasm is especially low for investing in technological development, with the percentage of companies willing to invest in such developments dropping to 20% from last year’s 29%, according to K&H. At the same time, only 11% of the surveyed companies said they would invest in capacity-increasing developments, down from the previous year’s 18%.

In the last quarter of 2016, only 17% of companies increased allocations for planned investments, while at the beginning of the year the ratio was around 31%, reports based on K&H’s findings.

Even so, some industries still seem to have an elevated mood in terms of planned investment, as the survey suggests that 47% of companies in the construction sector are willing to invest. At the same time, 46% of companies in Eastern Hungary and some 40% of companies with annual revenues exceeding HUF 10 billion said they are planning to invest this year.