The general economic sentiment indicator is at a level comparable or higher than in February in most areas of the economy in March, according to Poland’s Central Statistical Office (GUS).
Business morale is improving in March, following the consumer sentiment. So far, surveys of both social groups have shown that inflation was the factor that most significantly dampened moods. Inflation fell sharply at the beginning of the year and will likely decrease again in March, which will further improve moods in April.
Companies perceive that the situation has stabilized and is slowly returning to normal. Most sectors are seeing an improvement in economic indicators, although the most important ones for our economy: industrial processing, construction, transport, and economy still have negative values. This means that pessimists outnumber optimists.
Much more interesting data is provided by additional questions in the GUS main survey. It can be seen that a significant number of companies plan to maintain employment, especially among workers who are difficult to replace. A small percentage of companies plan to reduce employment – on average about 10% of companies in various sectors. This only confirms that the labor market is stable and will remain so.
Wage pressure is not decreasing, although companies indicate room for increase due to a good financial situation. However, the decisions on increasing wages or changing the employment structure will be made on an ongoing basis. This is evidence of a continuing pragmatic approach by companies to conducting business in these uncertain times.
Mariusz Zielonka, Confederation Lewiatan
