The monthly index of the economic situation of the Polish Economic Institute (PIE) and Bank Gospodarstwa Krajowego (BGK) increased in April by 6.2 points compared to the previous month up to 108.6 points. This was triggered by the improvement in the financial liquidity of companies and the increase in the value of current sales. In the current report, five of the seven components of the index are above the neutral level.

The monthly economic climate index (MIK) is an indicator that reflects the mood of Polish enterprises. It was developed by PIE in cooperation with BGK. The neutral level of MIK is 100 points. A result above this value means an improvement in the economic situation, and below – its deterioration. In April this year, the MIK increased to 108.6 points, i.e. by 6.2 points, compared to March and by 11.5 points against last year’s report from April.

The higher level of MIK was due to positive changes in the financial liquidity of companies and the increase in the value of current sales, while there are persistent negative trends in investment and demand for new goods and services.

In the current reading, five of the seven components of the index are assessed above the neutral level including: financial liquidity (134.2 points), salaries (111.5 points), sales value (109.9 points), employment (107.8 points) and production capacity (102.2 points).

The lowest level of the business climate indicator concerns investment expenditure (95.4 points), which has not exceeded the neutral threshold since January 2021, and new orders (99.0 points), with values below the neutral report for three months. It was added that the decrease in the value of the month-to-month business climate indicators occurred in the case of production capacity (-4.8 points), employment (-3.7 points), and wages and salaries (-0.2 points).

Analysts pointed out that the general business climate indicator remains above the neutral level, which means that the positive sentiment of entrepreneurs prevails. They stipulated that the improvement in these moods did not apply to all industries. According to the current report, the mood in manufacturing and service companies has deteriorated, and an improvement has been observed in trading companies. According to PIE, the mood of entrepreneurs could have been positively influenced by the lifting of restrictions for business related to the COVID-19 pandemic.

Arkadiusz Słomczyński order