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OTP: Outlook for Hungarian SMEs worsens

The outlook of Hungarian SMEs continues to deteriorate, a gauge of confidence in the sector by OTP Bank and Policy Agenda shows.

OTP Bank and Policy Agenda’s SME confidence index fell to 39.8% at the beginning of 2012 from 42.2% in Q4. The index stagnated in Q2 and Q3 of last year before dropping almost six percentage points in the last quarter.

SMEs polled at the end of last year expressed growing uncertainty and a worsening outlook for growth. They also said liquidity and sales problems were getting bigger.

About 70% of SMEs said the Hungarian economy would worsen in the next half year. Just 10% expected an improvement, albeit a slight one.

About 39% of SMEs see their own situations worsening during the period.