Poland: Business confidence falls again in July amid weakening outlook
July 24, 2014
The general business climate index decreased in July to 4.5 points according to the Central Statistical Office’s Business Tendency Survey (GUS-BTS). The figure was down from the 6.8 points registered in June and marked the lowest level since February. Nevertheless, the index is still above the zero-point threshold that separates optimism from pessimism, where it has remained all year.
July’s drop in confidence was driven by declines across most of the forward-looking categories that make up the index, including a weakening in firms’ expectations regarding their future economic situations and their outlook in terms of the financial situation in the coming months. Expectations regarding future production, order books and employment also tallied declines. Firms’ perceptions of their current general economic situation also moderated, whereas their views of their current financial situation were less negative. Overall, the July survey suggests that firms have a less positive outlook regarding the business environment in which they will be operating in the coming months.
Author: Carl Kelly, Economist