+2%

was the level to which the business confidence index in the service sector fell in the third quarter of 2014. One year ago, it was at the level of +6%.

A positive value of the index formally suggests a moderately favourable business climate in the service sector despite a slowdown in business activity. In most organizations, however, business confidence is falling in comparison with the previous quarter (partly due to seasonal fluctuations) and on an annual basis.

The behaviour of the index showed a clear downward trend. Insurance companies continue to be the most stable and successful players in the market for services and are not at risk due to seasonal fluctuations. However, this is where there was the most noticeable downward trend in business confidence: the business confidence index decreased from 20% in the third quarter of 2013 to 15% in the third quarter of 2014.

The problematic situation faced by the tourism industry can be seen in the fact that the business confidence index in the current quarter was only 5% (a year ago, it stood at 11%). Organizations that provide repair services for household goods and personal items, as well as companies that specialize in providing personal services (the business confidence index is negative for these companies) remain market outsiders.

This information comes from a new Monitoring the Business Climate study in the area of services by the Centre for Business Tendency Studies at the HSE’s Institute for Statistical Studies and Economics of Knowledge (ISSEK).