Leading index of economic climate up in December

Leading Business Climate Index (WWK) was 161.1 points in December, 2.1 points more than in November, the Investment and Economic Cycles Office (BIEC) reported. WWK did not exceed the value from October, which, according to BIEC, means maintaining the status quo in the economy.

In the opinion of BIEC, the behavior of the WWK informing in advance about future economic trends in December rather indicates that the current status quo in the economy will be maintained, without any clear signs of recovery and so far without the risk of a further slowdown. It is not surprising that such a situation occurs when the economy functions in a rhythm with the restrictions and loosening associated with the pandemic.

As emphasized, out of the eight components of the indicator, five acted towards its increase in December 2020, one towards its decline, while the impact of the other two components was neutral.

Among the components that improved in the last month, in many cases the improvement was relative, insignificant, and temporary – such as a one-off increase compared to the previous month or a long-term decline in annual terms, the Office emphasized.

BIEC indicated that in December enterprises recorded an increased inflow of new orders compared to last month. The increase in orders in the automotive industry and companies producing other means of transport as well as in the furniture industry had a major impact on this improvement. Since autumn, these companies have definitely recovered from the deep spring depression. A great part of orders in these industries is carried out for export.

(PAP)