Polish sentiment finally up in Q3: IRG SGH

After the collapse in Q2, consumer sentiment rebounded in Q3, according to the SGH IRG survey. The household health index (IRGKGD) increased by 24.3 points to  minus 25.9 points. However, consumer sentiment remains worse than before the COVID-19 crisis broke out.

The survey shows that fears of losing a job have decreased. The value of the balance of answers to the question: "How will it change, in your opinion, unemployment in Poland in the next 12 months" decreased by 32 points. However, it still remains at a high level (46.6 points), as the majority (over 72 percent) of respondents are still afraid of an increase in unemployment in the country (91.2 percent in the second quarter, 25.4 percent a year ago).

"The improvement in households' opinion on future unemployment may translate into an increase in consumer spending. However, the situation on the labor market is far from stabilizing. It reacts with a delay to changes in the economy,” the commentary reads.

The authors of the study report that the assessments of the future financial situation of the household improved. The percentage of households that expect their financial situation to worsen decreased from 65.5 percent  in the second quarter to 42.7 percent now, while the percentage of households that expect it to improve has increased from 10.3 percent to over 24 percent.

(PAP)