Household barometers throw up a paradox

A barometer of household conditions in Poland in the third quarter of 2005 has slightly decreased for the second time in a row this year, says the Institute of Economic Development at the Warsaw School of Economics (IRG SGH). After the barometer's value reached a peak in the first quarter, in Q3 it fell by 1.8 percentage points to -41.1.

In general, attitudes in households towards the economic situation in Poland became more pessimistic, especially a month before the elections. Those who criticized the economy most severely were entrepreneurs running their own businesses. Also farmers and country dwellers were quite skeptical about any improvement of the economy in the next 12 months.

According to the households, maintenance costs have increased in the last quarter. More and more families, especially in smaller towns, claim that the unemployment rate is likely to grow. For the second time in a row, the bulk of respondents said that the current economic climate is not favorable for saving.

At the same time, the indicator measuring the respondents' forecasts concerning the financial situation of their families in the next 12 months was 20 percentage points higher than last year, which means that there are more people who believe that their financial condition is going to improve.