Monthly economic climate index (MIK) increased by 7.8pts m / m to 102.8 in June

by   CIJ News iDesk III
2021-06-09   10:52

The Monthly Business Climate Index (MIK), which measures the sentiment of Polish enterprises, rose to 102.8 points in June from 95 points in May, the Polish Economic Institute (PIE) reported. The indicator was developed in cooperation with Bank Gospodarstwa Krajowego (BGK). The MIK level is above the neutral level for the first time (100 points).

In the June reading, almost all MIK components - except for investments - reached a level above the neutral reading. The highest values ​​of the ratio were related to financial liquidity (117.4), employment (114.9), the number of new orders (109.6) and remuneration (108, 7). Investments are the only component remaining below the neutral reading. However, a significant increase was also recorded in this area (by 17.7 points).

Compared to the previous month, the results improved significantly in terms of sales and the number of new orders.

"For the first time in 2021, MIK reached a level above neutral. The loosening of restrictions and, at the same time, a higher demand for goods and services, contributed to an increase in the value of the index in each of the analyzed components. However, the mood of micro-entrepreneurs remains negative. Published data from payment cards suggest that in recent weeks consumers have met the delayed demand. Similarly, the increased demand for products and services is demonstrated by the high value of MIK in the area of ​​the number of orders. Although production capacity is sufficient, problems with the supply of semi-finished products may affect production problems," said an analyst from the team strategy of the Polish Economic Institute Maciej Miniszewski.

The highest increase in the indicator was recorded among small and large entities (by 13.8 points and 12.1 points, respectively). A smaller, but also significant increase was recorded in the case of medium-sized enterprises (by 9.7 points). The only category of entities in which negative assessments of the economic situation prevail since January are micro-enterprises, for which the index value increased slightly (by 3.5 points) and amounted to 92.9 points in the June measurement.

The assessment of the economic situation in industry increased by 17.1 points, thus reaching a level above the neutral reading (106.5). In turn, the growth of the index in the service industry amounted to 12 points, and the index itself reached the value of 102.2. Most often, the increase in the number of new orders was observed in the case of medium-sized enterprises (32%), in which at the same time the largest share of enterprises with a decrease in the number of new orders (20%) was recorded.

Investments in the last three months were carried out by 43% of companies (4 percentage points more than in the previous survey). Higher investment expenditure was incurred by 21%, and lower by 4% of enterprises. Large (56%) and medium-sized (50%) companies invested mostly, and micro-companies (35%) least often (35%).

MIK is created on the basis of measurements in 7 key areas of business activity: sales value, new orders, employment, salaries, production capacity, investment expenditure, financial situation. The numerical levels are calculated on the basis of the results of surveys conducted on a representative sample of 500 enterprises in four size categories and five industry categories. The MIK levels range from <0; 200> and the index reference point is the reading of 100, which is the neutral level.

Source: MIK and ISBnews