The GKI business climate index increased slightly in April

By: Trademagazin Date: 2025. 04. 23. 14:24

According to a survey by GKI Economic Research Ltd. – conducted with the support of the EU – the outlook for consumers and the business world improved slightly in April compared to March. Companies’ willingness to employ did not change compared to the previous survey, but the overall expectation regarding the expected development of sales prices decreased significantly. In addition, the assessment of the predictability of the economic environment deteriorated.

Business prospects reached their lowest point in January this year, after which there was a slight positive shift. The GKI business confidence index increased by 1 point in April compared to March – a change within the margin of error. The industrial sector showed signs of life, its confidence index increased by almost 3 points compared to the previous month, while the similar indicator for the service sector decreased by 2 points. The trade and construction confidence indices practically stagnated on a monthly basis. The construction industry continues to be the least optimistic and business services the most optimistic sector.

The employment indicator, which indicates the aggregated staffing expectations of enterprises, did not change in April compared to a month earlier. There was no significant change in any of the sectors surveyed. In the next three months, 9% of enterprises are preparing to increase their staff, while 11% would reduce it.

The assessment of the predictability of the business environment deteriorated noticeably in April, with this indicator returning to the level at the end of last year.

The price indicator, which condenses the pricing plans of the business sector into a single number, also decreased significantly in the fourth month compared to the previous survey. This indicator fell to a six-month low. Intentions to increase prices decreased in all four sectors, especially in trade. 26% of companies would like to increase prices in the next three months, while 8% are preparing to reduce prices.

The GKI consumer confidence index reached its lowest point in November 2024, and since then the mood of the population has been somewhat more favorable. In April, this indicator was one and a half points higher than in March. The population assessed their financial situation in the past 12 months as significantly improving, while their financial prospects for the next 12 months were slightly improving. The country’s economic situation in the next 12 months is also considered to be improving compared to the previous month. The assessment of their own money that can be spent on high-value consumer goods has also improved. The population’s inflation expectations have decreased, while the outlook for the expected development of the number of unemployed people has also become more favorable compared to the previous month.