Are you sure?

Business confidence plunges sharply in September

GKIʼs Economic Sentiment Index, its combined gauge of consumer and business confidence, fell to a two-and-a-half-year low in September, within which business expectations plummeted to their lowest level in the past three years.

The research instituteʼs Economic Sentiment Index fell to -0.3 in September, from 4.0 in the previous month. The measure of confidence in the business sector, one of the two main elements of the index, plunged to 0.9 in September, from 7.5 in August.

According to the empirical survey conducted by GKI with the support of the EU, such a high deterioration in the business confidence index in a single month has not been seen for over ten years.

At the same time, the consumer confidence index - the other main element - improved to -3.7 in September, from -5.9 in the previous month, to reach its highest level in 17 years.

Within the business confidence index, confidence in the industrial sector fell to its lowest level in five years as the outlook for production as well as assessments of order stocks and inventories worsened. 

Sentiment in the construction sector improved somewhat after worsening almost continuously for close to a year. Companies in the building segment were more optimistic, while those in the civil engineering segment were more pessimistic.

Confidence in the commerce sector continued to deteriorate in September, reaching a level not seen in six years. Assessments of sales positions worsened, as did the outlook for orders. Companies were a little more optimistic about inventories.

The outlook in the services sector was the worst in three years.

Within the consumer confidence index, households were more optimistic about their financial position and their ability to make savings, the survey found.

The monthly report can be downloaded here.