The Economic Institute’s Barometer Indicator fell in July to 101.3 from 105.7 in June. The mood of households is currently historically low and, for example, lower than during the financial crisis. The difference between the state of mind for households and business is unusually large.
The barometer indicator provides a monthly picture of the current state of the economy. It is based on surveys where companies and households have to answer questions about the current situation and future prospects in the economy.
The barometer indicator has an average of 100. If it exceeds 100, the mood in the economy is stronger than normal and if it is below 100, the economy is weaker than normal.
In the diagram above, the cyclical fluctuations are clearly visible over the years. The IT boom around the turn of the millennium and the subsequent collapse is particularly noticeable. The rise in 2007 and the financial crisis shortly afterwards are also clearly visible.
The recent period has been marked by the corona crisis. In April 2020, the indicator fell sharply. The decline was the largest ever recorded. After that, the indicator has risen and it has been on a strong, or very strong, mood in the economy since the beginning of 2021.