Business prospects down in September 2022: poll

Business optimism fell in September 2022 compared to August 2022, according to a poll conducted by Vedic, as businesses expressed concern about inflation and its impact on the overall economy.

Verdict has been running the poll to study business optimism during the Covid-19 pandemic, as expressed by companies’ outlook on their future growth.

An analysis of poll responses recorded in September 2022 showed that future growth prospects fell by two percentage points to 60% from 62% in August 2022.

Optimistic respondents fell to 24 percent from 26 percent in August, while those who were most optimistic were 36 percent in September.

Respondents who were optimistic rose one percentage point to 11 percent in September, while those who were most pessimistic dropped two percentage points to 13 percent from 15 percent in August.

The percentage of neutral respondents rose three percentage points to 16 percent from 13 percent in August.

The analysis is based on 373 responses received from readers of Verdict Network sites between 01 September and 30 September 2022.

Australian business sentiment has fallen to its lowest level since April 2020.

The seasonally adjusted S&P Global Australian Manufacturing Purchasing Managers’ Index^™ (PMI^™) decreased from 53.8 in August to 53.5 in September. Despite a slowdown in overall growth, the health of Australia’s manufacturing sector improved during the month, the survey found.

Slowed employment due to employment challenges, declining supplier performance due to supply chain disruptions, and declining pre-production inventory levels are the main reasons for the slowdown in growth.

The PMI also indicated that business optimism reached its lowest level since April 2020, mainly due to the impact of the cost of living crisis and inflation on the economy.

Rising inflation in Spain and Poland is affecting business confidence.

The seasonally adjusted S&P Global Spain Manufacturing PMI^® It fell to 49 in September from 49.9 in August. The decline was due to lower production and new orders due to higher inflation and lower demand. Business confidence about the future, as a result, entered a negative state in an economic climate characterized by high inflation and low consumption.

Confidence fell in Poland, according to the S&P Global Poland Manufacturing PMI.^® No change from 50 in September. The slowdown was caused by output reductions and new orders at a historically significant rate. Business confidence was subdued as input price inflation accelerated in the month for the first time since March due to higher energy prices. Firms were forced to cut jobs to cut costs, leading to a fourth consecutive survey period.

Optimism decreased in the main sectors of Italy, Latvia and Germany

Business optimism fell to 105.2 in Italy from 109.2 in September, according to the ISTAT economic sentiment indicator from the Italian National Institute of Statistics (ISTAT). The market services confidence index fell to 95.9 from 103.0, while confidence in the manufacturing sector fell to 101.3 from 104, as expectations for future orders weakened. Retail confidence also fell to 110.6 from 113.4. Compared to last month, respondents expressed more pessimistic views on current business trends and future sales.

Data from the Business Sentiment Survey conducted by the Central Statistics Bureau (CSB) show that business confidence indicators in Latvia remained negative for the fourth consecutive month in all business sectors in September 2022. Indicators in construction, services and manufacturing continued to fall in September. Compared to August, due to lack of demand, higher prices of energy resources and shortage of manpower. Confidence in the construction sector was -17.2, a 1.6 percent decrease compared to the previous month, and -8.4 in the manufacturing sector, a 2.7 percent decrease from the previous month.

Optimism in the German economy fell to 84.3 points in September from 88.6 in August, according to the ifo business climate index. The index has reached its highest level since May 2020 in all four major sectors of the country namely manufacturing, services, trade and construction. Companies have clearly assessed their current situation as worse. Pessimism about the months ahead has increased, with retail expectations at an all-time low.

Belgium and the Czech Republic witness a sharp decline in business confidence.

According to the National Bank of Belgium’s monthly business survey, confidence in Belgium fell sharply to -11.8 in August from -5.8 in September. The business climate worsened in all the activity sectors included in the survey, except for the construction industry, where the indicator remained stable. Business leaders were less optimistic about the state of their order books and their business outlook.

According to the Czech Republic’s NR Business Cycle Survey, the confidence indicator fell by 3.3 points to 93.6 in September. Confidence among industrial entrepreneurs fell for the fourth time in a row. The number of entrepreneurs who are dissatisfied with their current overall needs, however, has remained constant.

UK confidence has been weighed down by inflation and political uncertainty.

The Institute of Directors’ (IOD) economic confidence index, which measures the optimism of business leaders in the UK, rose slightly to -43 in September. The self-employment confidence index, however, fell from +28 to +20 in August. Business leaders said inflation in the UK and political instability in the UK government were the main reasons for their worries.

Overall business confidence, as measured by the Lloyd’s Bank Business Barometer, stabilized in September after falling for three consecutive months between June and August. In the North West and Yorkshire and the Humber regions, however, business confidence fell by 14% and 11% respectively. Confidence remains lower than the national average in other UK regions, including the South West, East Midlands, Northern Ireland, East England and Wales.

Canadian small business confidence is slightly lower

Canadian small business confidence in short- and long-term confidence fell to 49.5 in September, down half a point from August, according to the Canadian Federation of Free Business (CFB) Business Barometer.^® Short term index. An index above 50 indicates the owner’s expectation of stronger business performance.

The general state of the business has not changed since August, and full-time hiring plans for the next three to four months are on hold. Most Canadian provinces had a bad forecast for the next three to four months, reading below 50. Nova Scotia and Prince Edward Island were the most optimistic, although their ratings were in the mid-50s.