Business Sentiment Remains Subdued Despite Improvements

The results of the July survey point to a slight improvement in business sentiment, albeit at a low level. Business expectations improved compared to the previous quarter, particularly in the manufacturing and services sectors, but remained largely sceptical. Despite the ongoing war in Iran, business uncertainty and selling price expectations declined compared to April, whilst capacity utilisation improved slightly. However, order books remained stagnant, and the "insufficient demand" was cited across all sectors as the most prevalent obstacle to business activity.