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Hungarian SMEs pessimistic about year ahead

Small and medium-sized Hungarian companies are pessimistic about the business climate in the upcoming 12 months, business daily Világgazdaság reported. According to K&H's confidence index, SME confidence index stood at
-5.6 points in April. The survey targets companies with annual net revenue of less than Ft 700 million. More than half of the companies polled said they are planning to raise prices, but by a rate lower than inflation in the upcoming months. SMEs said orders are paid for after an average of 27.5 working days, which they expect to rise to 28.8 days in the next year. The companies generally take 20.5 days on average to settle their own bills with suppliers, which leaves an 8.6- day period for bridging finances. Respondents expect to accommodate for large increases in taxes and employers' contributions in the next year and felt that application for EU funding is still difficult and not transparent enough. The reasons are generally seen to derive from increased competition.