The gradual improvement in business climate observed since May has proved to be temporary. In August, the index of expectations for the next 6 months was at a record low – such are the most recent indications of the Entrepreneurs’ Optimism Index, calculated based on surveys conducted among members of Employers of Poland.
In August 2016, the Entrepreneurs’ Optimism Index assumed a value of 99.2 points in terms of the assessment of the current business situation, compared to 101.2 points last month. The prognosis for the next 6 months is also less optimistic, dropping from 95.7 to 92.2 points.
Main indications of the Entrepreneurs’ Optimism Index – figures for August 2016
After a relatively brief period of increased optimism among entrepreneurs, during which the index of the assessment of the current business situation has briefly exceeded the 100 points barrier, August brought yet another drop in moods. Notably plans for investments and job creation are also being restricted, which is a cause for concern.
The less optimistic view of the current and future business climate was shaped by a number of factors. Some respondents felt the consequences of the Brexit referendum. As a result of the pound weakening, there are a less orders from British contracting parties. Some cooperators of Polish companies in other EU countries, who were strongly active on the British market, have even already filed for bankruptcy.
Another problem indicated is uneven deflation, expressed in a quicker drop in prices of final goods, which has a negative impact on the profitability of business activity.
The issues of unstable legal environment, frequent changes of regulations on businesses and excessive controls hindering business activities are also constantly brought up.