Research
1 of October, 2007Research year: 2007
Business Climate 2/2007 (October)

Even though expectations are somewhat less cloudy than half a year ago, firms with pessimistic expectations still scarcely outweigh those with positive prospects. Regarding the longtime trough in 2007's economic growth, prospects might be insufficient for a perceptible upswing in 2008. Business confidence is less favorable in the services sector compared to manufacturing companies. It seems that building industry couldn't overcome the difficulties of the sectoral downturn in 2006. According to the responses businesses' total turnover remained unchanged in 2007 characterized by the contrast of sluggish domestic and vivid external demand. Same is true for expectations, which means that even the expected dynamic growth in exports could fail to outweigh negative effects of weak national sales. Balance figure for domestic sales decreased slightly, favorable balance figure for export sales remained almost unchanged. This is an important aspect, since export is still the main force behind economic activity in Hungary. In the services sector assessment of both present and expected turnover is far less favorable than in manufacturing which is true for domestic and export sales as well.

Related research fieldBusiness cycle research
Related labelenterprise survey