The Business Recovery Index declined again in July.

The Institute for Economic Research reported that the index dropped from 0.09 to 0.05, marking its second consecutive month of decline.

Key trends:

1. The percentage of companies operating at full capacity has risen. In July, 63% of businesses were operating at full or near-full capacity, compared to 45% a year earlier.
2. Uncertainty levels have decreased. The proportion of those unable to predict their business situation for two years fell from 37.4% to 31.4%.
3. Positive production outlooks: The share of entrepreneurs who do not expect changes in production has decreased, while those planning to expand production have increased.
4. Inflation is slowing. The percentage of companies forecasting rising raw material prices dropped from 42.8% to 38.9%, with some even predicting a decline.
5. Electricity issues are less relevant. Only 6% of businesses see this as a major obstacle.

Main challenges:

1. Shrinking order portfolios: The average duration of new order portfolios decreased to 4.5 months.
2. Export optimism has waned slightly. The share predicting export growth has decreased slightly, while those expecting a decline have increased.
3. Rising risks and staffing issues: Security threats again became the main challenge for 57% of companies, matching labor shortages.
4. Difficulties hiring employees: The number of those encountering trouble finding qualified workers has fallen, but difficulty finding unskilled workers has increased.