West is best

Conditions for enterprises in Poland slightly worsened in October, according to a report on business cycles in Polish voivodships published by the Institute for Market Economics (IBnGR). The institute's business-sentiment index reached just 19.7 points for last month, whereas in September it was 24.8.

The most optimistic sector was banking. For them, October's business sentiment scored 44.2 points, whereas in two other sectors, industry followed by trade and services, the figures were an abysmal 6.6 and 9.7 respectively.

The group's outlook index, which illustrates entrepreneurs' expectations for the next three months, is significantly lower than in previous months. Although the indicator is still positive, it has dropped from 31.9 in September to 15 in October. "The fall reflects businesspeople's weakening optimism," said the coordinator of IBnGR's report, Marcin Peterlik. "This is largely caused by the election results, and the failure of Civic Platform, which was the entrepreneurs' favorite."

The lowest expectations were recorded in the industry sector, with business-outlook levels dropping below zero for the first time this year. Peterlik says it is too early to talk about the reasons for this situation.

Among the 16 voivodships, the highest business-sentiment level, 41.9, was recorded in Lubuskie voivodship, in the west of Poland. The second, with 38.8, was Dolnośląskie voivodship, which was ranked first in August and September. The worst results were noted in Świętokrzyskie and Podkarpackie voivodships. "Most often it is the voivodships from the southwestern part of the country that are doing best. Performance of the 'eastern wall' is usually worse," explains Peterlik. It is worth noting that despite the current slide, this year entrepreneurs' attitudes are generally much more optimistic than in 2004. Last year, October's business-sentiment index was a flat six.