BIEC: Economic sentiment drops in July

The leading indicator of economic sentiment (WWK) in Poland estimated by the Bureau for Investments and Economic Cycles (BIEC) decreased by 0.3 points and stood at 167.3 points in July.

“Overall, since the last high at the beginning of this year, the indicator lost nearly 4 points. The majority of components behave similarly, registering their local peaks at the end of the previous or early this year. Currently, their monthly changes oscillate around much lower values than half a year ago. This mainly applies to assessments of the financial situation in companies, the pace of inflow of new orders and the value of stock exchange indices,” BIEC analysts said.

“The biggest negative impact on the value of the indicator this month was the stock exchange. Since the beginning of the year, indices have been losing value, many companies have left the trading floor, the number and value of investments are declining and the stock market itself is being marginalized as a source of raising capital for development. Stock indices values have dropped by almost 15 percent since the beginning of the year,” the report added.

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