In 4Q20, BAG member businesses assess their present business situation negatively, while their expectations for the next 6 months are positive – BAG reported in its most recent review.
BAG business climate indicator amounts to -12.8 points, with the present business situation indicator sitting at -30 and the business expectations indicator at 6.5.
The BAG Business Climate is based on the responses of BAG member businesses. Companies assess their present business situation and outline their expectations for the next six months. They can describe their present business situation as “good,” “satisfactory” or “bad” and their expectations for the next six months can be categorized as “more favorable,” “unchanged” or “less favorable.” The BAG Business Climate is a transformed mean of the balance values1 of the present business situation and the expectations for the next six months. For the purposes of this index, BAG members are divided into the following four sectors: trade, manufacturing, construction, and service.
In 4Q20, the BAG Business Climate indicator is negative for all sectors except the manufacturing sector. The positive business climate indicator in the manufacturing sector results from a positive assessment of the business expectations. Meanwhile, business expectations are also positive in the trade sector. This indicator is negative only for the construction sector. However, the assessment of the business situation in all four sectors is negative. The most negative assessment of the present business situation per sector was in the construction.
