Poland's monthly business climate index MIK decreases to 98.0 pts in September - PIE

The current MIK is 4.0 points lower than this year's highest MIK reading recorded in February (102.0 points). The current reading is 0.8 points higher than the September reading last year, which was also below the neutral level (97.2 points).

The authors of the survey report that the deterioration in business sentiment in the September reading was determined by the predominance of negative assessments over positive assessments for the components: investment, value of sales, new orders and employment. The predominance of positive assessments over negative assessments persists for another month in the case of the components: liquidity and remuneration.

The survey shows that in the September reading, the three components of the MIK (liquidity, wages and production capacity) are above the neutral reading.

The value of the liquidity component increased mdm (by 8.9 points to 123.6).

"This indicates a good financial situation for companies, which, however, does not translate into investment in tangible and intangible assets," it wrote.

In the September reading, the value of the investment index fell mdm (by 5.8 points to 67.2 points) and reflects the continued prevalence of non-investing firms over investing firms since 2023.

The wages component index, on the other hand, has remained above the neutral reading since the beginning of the year, although it has declined for another month (from 117.1 points in July to 113.6 points in September).

"This signifies a diminishing willingness of companies to raise employees' wages," it wrote.

PIE reports that there was a mdm decline in the employment index (down 5.2 points to 99.5), which is below the neutral level (100.0) for the first time in a year.

"The vast majority of companies want to leave employment unchanged, and the share of companies planning to increase employment is smaller than those planning to cut jobs," they wrote.

The MIK for the value of sales has remained below the neutral reading since the beginning of the year, and fell 2.5 points mdm to 90.3 in September.

In contrast, negative business sentiment also prevailed for the new orders component, with a slight mdm increase in the index in September (up 0.3 points to 90.3).

The September reading showed a mdm increase in the capacity component (up 2.9 points to 101.3). The latest reading shows an advantage for companies with too little capacity over those with too much capacity.

map/ nl/ han/