Inflation is no longer the biggest problem for Polish companies
As reported in Tuesday’s information, according to the EFL Barometer reading for the fourth quarter of this year. shows that inflation causes concerns among 13 percent. entrepreneurs; they believe that price increases will have a negative impact on their business in the coming months. Compared to the measurement from the previous quarter, the result is lower by 11 percentage points. The percentage of entrepreneurs predicting stagnation of the situation reaches 60%. compared to 43 percent in the third quarter of this year Every fifth (20%) SME representative is not sure in what direction the situation will develop; in the previous quarter it was 24 percent.
On an annual basis – as the authors of the report said – “an even greater improvement in inflation sentiment is visible.” In the fourth quarter of 2023, 44 percent companies were afraid of the negative impact of inflation on their business activities, which is more than three times as much as currently. The larger the company, the less it is afraid of the negative impact of inflation on its business. 7 percent medium-sized companies believe that due to high inflation, their economic activity may deteriorate in the coming months. In the group of small and micro companies, this percentage is 12 percent, respectively. and 18 percent
Which sectors are most exposed to cost increases?
The greatest number of entrepreneurs who are afraid of the negative impact of inflation on their business represent the hotel and catering sector, i.e. HoReCa – 23%, and trade – 16%. Transport companies are least concerned about their future in the context of inflation – 6%. asked, and production – 7%.
The latest reading of the EFL Barometer shows that the fear of rising inflation does not rank first in the ranking of entrepreneurs’ opinions for the second time in a row.. The most serious concerns of companies concern the increase in the costs of running a business – this percentage reaches 30%. In the previous quarter, 32 percent indicated this factor. entrepreneurs; 18 percent companies are afraid of a drop in demand compared to 16 percent in the third quarter, and 12 percent is concerned about the lack of employees; this is a similar level to the quarter before.
Radosław Woźniak from EFL, quoted in the information, pointed out the optimistic trend regarding the condition of companies. – The percentage of indications for individual elements such as inflation or operating costs is getting lower. Just a year ago or at the beginning of this year, even 70 percent. entrepreneurs were afraid of these factors, today this group is much smaller – he pointed.
The EFL barometer is an indicator informing about the tendency of SME sector companies to grow – development understood as companies setting goals related to the increase in sales and production, expansion into new markets and maximization of profits, which is related to investments in fixed assets. The financial condition of SMEs forecasted for a given quarter provides a reference point for drawing conclusions about the expected direction of changes that favor growth or inhibit the development of companies.
EFL SA has been part of the Crédit Agricole Group since 2001.
