In January, after a few months of decreased optimism, companies’ assessment of both current and future economic situation has improved – such are the results of the Employers’ Optimism Index, based on a survey conducted among members of Employers of Poland.
January’s index has a value of 100.9 points with regards to current situation, compared to 100.3 points in December. The prognosis for the next six months has also improved – rising from 105.7 points last month to 107.7 points.
Employers’ Optimism Index – January 2015
Polish companies are currently experiencing a slight improvement. Their assessment of future economic conditions improving significantly as well. Companies in finances and business services are most optimistic, while transport and trade is down. Industry, mining and construction are still doing relatively badly.
The transport industry finds itself in a particularly tough position. Companies indicate that they have to fulfill new administrative obligations, which creates additional costs. With the start of the new year, a.o. fees for road use in many countries increased, while Germany introduced the obligation for foreign transport companies to provide documentation in German and pay according to German minimum wage regulations. Hungary introduced a new electronic control system of the flow of goods which is an additional burdens.
For the first time since July 2014 companies indicated an increase in new procurements, which show that the economic climate is improving. However, respondents are still restricting their acquisitions, although that may change in the coming months due to the need to supplement stock. A decreased dynamics in payment delays is a positive phenomenon, as is the expiring pressure on price cuts. There are reasons to believe that January will see a restricted scope of deflation. Entrepreneurs’ decreased willingness to create jobs is, however, a less optimistic indication, though one has to keep in mind that employment dynamics are still positive.
Prognoses regarding the near future are also improving – companies expect the economy in the second half of 2015 to be in a better situation which means that they also intend to spend more and more on investments.