In January, the index of general assessment of the business situation dropped at a record rate, though it maintains a relatively high value. The index showing expectations for the future entered negative territory for the first time – such are the indications of the Entrepreneurs’ Optimism Index.
The Entrepreneurs’ Optimism Index assumed the value of 107.8 points with regards to the assessment of current business situation, compared to 115.1 points last month. The prognosis for the next six months has also worsened, dropping from 102.2 points to 97.4 points.
Main indications of the Entrepreneurs’ Optimism Index – figures for January 2016
The gradual decrease in optimism starts to translate to the assessment of the current business situation. For the first time, the expectation index dropped below 100 points, which means that the majority of respondents expects their business condition to deteriorate in the next six months. However, compared to last month companies report improvement, though much less significant. The drop in the index of current business situation was the biggest ever, but the index still has a relatively high value, markedly higher than the average for March 2014-January 2016.
Moods are particularly sour in the financial sector and among providers of support services for business. This is caused by the difficult situation on the financial market, as well as the introduction of a new tax for this group of entities. The condition of the construction sector is also bad, despite the prospect of conducting projects funded by the EU 2014-2020 financial perspective. Results of the trade sector are also weaker.
However, the condition of industry improved, particularly in terms of prognoses. Drops in fuels prices help keep the transport sector in moderately good condition. Similarly to previous editions, assessments were most negative among small companies, while big ones fared best. Medium-sized companies are most concerned about their future.
General assessment of the business situation Prognoses for the next six months