Survey Shows Rising Optimism and Investment in SMEs

The National Association of Entrepreneurs and Employers (VOSZ) reported no tension in the labor market of domestic enterprises, with no layoffs planned and double-digit wage growth forecast. Investments are expected to return to the levels of a year

By: hungarytoday.hu

Jul 17 2024
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Survey Shows Rising Optimism a

The National Association of Entrepreneurs and Employers (VOSZ) reported no tension in the labor market of domestic enterprises, with no layoffs planned and double-digit wage growth forecast.

Investments are expected to return to the levels of a year ago. This information is based on the second-quarter VOSZ Barometer business sentiment analysis, which surveyed 400 VOSZ-member company leaders.

The second-quarter VOSZ Barometer indicator stands at 54 percent, down from 56 percent in the same period last year but showing a rise for the second consecutive quarter. Despite the financial situation of domestic SMEs (small and medium-sized enterprises) being similar in the third quarter,

business sentiment and investment propensity have improved compared to the first quarter, approaching levels from a year earlier.

Challenges such as declining purchasing power, rising costs, a backlog of orders, and a shortage of skilled labor are diminishing in importance. Business sentiment remains optimistic at 59 percent, up slightly from the previous quarter, driven by positive expectations about the country’s economic situation and sales.

The investment sub-index rose from 37 to 40 percent, indicating that investment intentions have moved out of the downward trend and reached the level of the second quarter of 2023.

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