Business Sentiment Remains Tense

The index of current assessments of the overall economy fell by 0.3 points to –3.8 points in June, remaining below the zero line that separates positive from negative assessments. In the manufacturing sector, the situation index declined (–1.1 points) and, at –7.6 points, remained in the sceptical range. In the construction sector, the current situation index also fell (–3.6 points) and, at –0.8 points, was once again slightly below the zero line. In the service sectors, the current situation index rose slightly (+0.6 points), but at –2.1 points it remained in negative territory. The retail sector also saw a slight rise in the business climate index (+0.8 points), although it remained below the zero line at –2.6 points.

The index of business expectations for the economy as a whole rose slightly in June (+0.3 points), but at –6.3 points it remained below the zero line that separates negative from positive economic expectations. In the retail sector, the expectations index fell sharply (–5.2 points) and stood at –20.2 points, well within the range of sceptical economic expectations. In the services sector, by contrast, the expectations index rose (+1.9 points), but remained below the zero line at –5.3 points. In the construction sector, the index rose (+0.9 points) to stand at 10.8 points. Here, employment expectations improved, though they remained at a sceptical level. In the manufacturing sector, the expectations index fell in June (–1.0 points) and, at –8.9 points, remained in the range of sceptical economic expectations.