Post-election drops in consumer sentiment
The latest Consumer Index measurement took place in the second half of October, after the emotions stirred by the election campaign had already settled, and it turned out that no one was entirely satisfied with the outcome. Law and Justice has not managed to get as many votes as they might have expected, whereas the opposition has not succeeded in removing the ruling party from power. This conclusion of the elections has clearly made its mark on consumer sentiment, with the Consumer Index noting the biggest drop in months.
Although perceptions of the current situation remain stable, Poles are still pessimistic in their forecasts for the future of the country’s economy and of their own households. What is more, the current condition of the economy is evaluated considerably less favourably than the status of households. Results such as these might be worrisome, if we consider that a similar situation could be observed before periods of economic downturn in the past.
It is also worth mentioning that this downward trend in assessment of the country’s economy has been going on for over a year now (since May 2018). Perceptions of the status of households are considerably more stable, but a minor downward trend is noticeable in this case as well. As further growth of social transfers is unlikely in the coming years, while other countries, including Germany, report rather unoptimistic information about the status of their own economies, this trend is likely to continue, or even amplify in the months to come. The future will show if Poland is going to be a “green island” again.
Account Manager, Public Division