Poland: Business sentiment turns pessimistic in October for the first time in close to three years
Manufacturing-sector business confidence fell in October, according to the business tendency indicators released by the Central Statistical Office (GUS). October’s business climate indicator dropped to minus 1.9 from plus 0.2 in September. The indicator thus fell below the zero-point mark that distinguishes optimism from pessimism in the manufacturing sector for the first time since December 2016.
October’s slump came on the back of notable deterioration in businesses’ expectations, while their assessments of current conditions improved. Firms’ expectations regarding the future general economic situation, their production levels and orders books swung from positive to negative territory. Moreover, their expectations on their future financial conditions and on employment turned more negative. On the other hand, business assessments of the current general economic situation, their order books and production levels improved—although the last two categories remained entrenched in pessimistic territory—, while companies’ assessments of their financial situation moved further into negative terrain.