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:
- 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.
- Uncertainty levels have decreased. The proportion of those unable to predict their business situation for two years fell from 37.4% to 31.4%.
- Positive production outlooks: The share of entrepreneurs who do not expect changes in production has decreased, while those planning to expand production have increased.
- 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.
- Electricity issues are less relevant. Only 6% of businesses see this as a major obstacle.
Main challenges:
- Shrinking order portfolios: The average duration of new order portfolios decreased to 4.5 months.
- Export optimism has waned slightly. The share predicting export growth has decreased slightly, while those expecting a decline have increased.
- Rising risks and staffing issues: Security threats again became the main challenge for 57% of companies, matching labor shortages.
- Difficulties hiring employees: The number of those encountering trouble finding qualified workers has fallen, but difficulty finding unskilled workers has increased.