For the twenty seventh time the SME Outlook, a joint research project of the IEER, the Observatory (Figyelő) and the Volksbank, examined in July 2011 the Hungarian small and medium enterprise sector, its financial position, prospects, and the factors that influence an individual company's business position. In addition to questions related to the current business situation, current topics and issues -- and the corporate responses to these -- are analyzed which, in turn, have an important role to play in this sector’s adaptability, financial standing and development.

The SME Business Climate Index only partially reflects the less favourable macroeconomic situation of the second quarter of 2011 as compared to the first: of all current business situation indicators only production levels and stock orders decreased while all others were able to rise. In addition, all indicators – with the exception of stock orders and production level indicators – achieved higher scores in the second quarter of 2011 than a year earlier. Despite the ambivalent assessment of the current situation, the short-term expectations of small and medium enterprises are almost uniformly negative toward the changes in the summer of 2011: each indicator has deteriorated, the expected business situation assessment being the only exception. In light of all this, the SME Business Climate Index fell again: whereas in January it was 12.7% and in April was 10.1%, in July it reached only 6.7%. The SME Uncertainty Index somewhat decreased (0.432) compared to its first quarter peak (0.451), indicating a decrease in the diversity of opinions with respect to the assessment of the current and expected business situation of small and medium businesses, that is, the deteriorating business climate is becoming clearly perceivable to all companies.