Findings of the IEER Business Climate Survey taken in October 2019: Business situation worsening, expectations more pessimistic
The latest Business Climate Survey taken by IEER is based on the answers of 2268 CEO respondents. According to the results, the Business Climate Index dropped back to 46 points in October 2019 from 58 points measured in April. This has been the lowest score since October 2015.Businesses thus seem to judge the business climate as being far less favourable than before, meaning that the improving tendency starting in October 2017 broke. The reason behind this may be that expectations concerning the future business situation, investments and orders all became more pessimistic in the previous half. It was the business situation outlook that dropped back the most significantly.
The latest Business Climate Survey taken by IEER is based on the answers of 2268 CEO respondents. According to the results, the Business Climate Index dropped back to 46 points in October 2019 from 58 points measured in April. This has been the lowest score since October 2015.
Businesses thus seem to judge the business climate as being far less favourable than before, meaning that the improving tendency starting in October 2017 broke. The reason behind this may be that expectations concerning the future business situation, investments and orders all became more pessimistic in the previous half. It was the business situation outlook that dropped back the most significantly.
The Uncertainty Index was 8 points higher than in April, this time at 44 points. This might mean that the companies' business situation assessment has become less uniform compared to the time the previous study was taken.
The IEER Business Climate Index by company features
The Business Climate Index was the highest for trading companies (+56 points), while for companies in the construction industry it was somewhat lower (49 points). Business service providers and businesses in the processing industry are at 48 and 42 points, respectively. Half-on-half results show that it was the processing industry that experienced the heftiest drop (19 points since April). Corporations in the construction industry, service providers and trading companies all scored lower – by 11 points, 7 points and 3 points, respectively – than in the previous half.
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 MBET 2019 Nov |