Ecostat‘s SME confidence index measured 43 in November, compared to 40.4 in October and 47.9 in November 2005. The SME managers’ outlook for the country’s economy improved sharply in November, suggesting a relatively positive response to the budget bill, with nearly a quarter optimistic, compared to just 5% a month earlier. In an assessment of their own situation and outlook, 48% of managers said things would get worse in the coming six months. 27% of managers said, however, that their companies planned to make developments, up from 17% in the previous month. Just under one-quarter of managers said competition on the market would increase, and 34% said they expected a new capital-strong competitor to enter the market. 29% of the managers said the chances of winning orders from a multinational were good, up from 22% in the previous month.
The managers were not as pessimistic about production conditions in November as in October, probably because of foreign investors’ positive assessment of the government’s austerity program. 39% of the managers said they expected domestic sales to fall, as real wages are expected to fall in 2007. Just 15% expect higher sales in Hungary. 44% said their liquidity situation would remain unchanged in the coming six months. 34% expected financial difficulties, unchanged from the previous month. The managers said consumer prices would rise an annual average 5.4% in 2006, reaching a twelve-month 5.9% in December. They said their own prices would rise 3.7% in 2006. Ecostat projects consumer prices will rise 3.8% in 2006 and over 6% in 2007. (Mti-Eco)
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