Poland: Business confidence declines in January
January 27, 2011
Business confidence in the manufacturing sector fell in January for the fifth consecutive month. According to the Central Statistical Office's Business Tendency Survey (GUS-BTS), the industry index for the expected general business climate decreased from 1.4 points in December to minus 2.3 points in January and settled below the zero-point threshold, which marks the border between pessimism and optimism, for the first time since December 2009. The deterioration in the sentiment gauge reflects increasing pessimism among businesses regarding the economic outlook over the short run. Survey respondents were particularly concerned about the general economic situation and their ability to pay current debts. On the other hand, businesses were more optimistic regarding expected selling prices of their products. Growing pessimism among businesses may contribute to slowing investment growth in the months ahead.