"The business confidence of both Hungary's 100 largest companies and small and medium-sized enterprises improved in February, think tank Ecostat has cited the finding of its monthly poll on Friday. Note, however, that the improvement comes after a drastic plunge at the beginning of the year.The Top-100 prosperity index, which gauges the confidence of the country's 100 largest companies, stood at 95.4% at the end of February, higher than in January (86.6%).
The index calculated from the short-term business expectations of the biggest companies has got near the positive side again, following the plummet observed in January (from 102.2% in Dec 07). The chart shows a mild rising trend for about a year.
Expectations of local multinational companies about the economy have been cautiously becoming more optimistic, even though ups and downs in sentiment did increase their uncertainties occasionally. The dominance of positive expectations in the companies projections for the first half of 2008 is attributable to low basis (87.9% in Feb 07).
More than 75% of the largest enterprises had plans in February to launch technological investments within a year. The steady level of their propensity to develop foreshadows a pick up in investments in the economy.
The prosperity index for small and medium-sized enterprises (SMEs) came to 93.6% in February, considerably up from 79.4% in January. The latest figure has caused a mild improvement in the trend.
Ecostat said 53% of SMEs planned to embark on technological investment projects within a year."
Source: Portfolio Online Financial Journal
03.03.2008