SME confidence slips in June
Ecostat's SME confidence index slipped to 47.2% in June from 51% in May, showing growing pessimism.
Ecostat said the prospect of higher taxes and domestic energy prices from the autumn along with a fall in real wages outweighed any global economic improvements in SMEs' assessment. Ecostat's SME confidence index averaged 49.3% in the second quarter of 2006, the same as the average in the first quarter. One-fifth of SMEs said the domestic market would contract in the coming months, citing falling wages and increasing inflation. Just 27% said their output would expand, compared to 46% in May.
SMEs have a more favorable outlook, however, for exports: 29% said foreign demand for Hungarian products will grow because of the weakening forint. Just 37% of SMEs said they planned investments, the lowest ratio in two years. Ecostat attributed the fall to uncertain demand and financing difficulties.
SME managers put annual average inflation at 4% in June, as against 4.6% in May.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.