Poland's Monthly Business Climate Index (MIK) fell to 98.0 in February, slipping under the neutral 100-point threshold following a four-month stretch above that level, the Polish Economic Institute reported on Wednesday.
The institute said the downturn was led by weaker readings for sales, new orders, production capacity and investment - all of which registered below the neutral mark. In practical terms, that means a larger share of companies reported deterioration rather than improvement across these measures.
Month-on-month, values for sales, new orders and financial liquidity declined. The institute pointed to a high base effect after a very strong sales period at the end of 2025 and to seasonal shifts in consumer spending as explanations for part of the month-on-month drop. The report also cited ongoing geopolitical uncertainty as a continuing negative influence on business sentiment.
On the labour front, the institute noted stability. "At the same time, the labour market remains stable - firms are not curbing hiring or wage-increase plans despite rising labour costs," said Urszula Klosiewicz-Gorecka, senior analyst at the institute. She added that companies generally assess financial liquidity positively and that there are the first signs of a rebound in investment, particularly among large enterprises.
When broken down by company size, large enterprises were the only segment to remain above the neutral threshold, recording a reading of 105.2. The institute linked that stronger performance to better liquidity and plans among large firms to raise employment and wages.
Medium-sized firms experienced the most pronounced weakening, according to the report. The institute said these companies faced broad declines in sales and new orders, which translated into visible excess production capacity. Smaller businesses - including small and micro firms - also stayed below neutral, constrained by weak sales, fewer orders and subdued investment activity.
Across industry sectors, sentiment remained below the neutral level, with construction posting the weakest reading. The institute attributed construction's low score to falling sales and orders combined with limited investment in the sector.
The Polish Economic Institute's February MIK highlights a mixed picture: weakening demand and investment readings overall, stability in employment intentions, and divergent performance by firm size, with large companies showing the earliest signs of recovery in investment plans.