Business conjuncture, June 2020

In June 2020, the total business climate indicator increases by 11.4 percentage points in comparison with the previous month which is due to more favourable business climate in all observed sectors - industry, construction, retail trade and services.

Industry. The composite indicator ‘business climate in industry’ increases by 9.7 percentage points as a result of the optimistic industrial entrepreneurs’ assessments and expectations about the business situation of the enterprises. At the same time, the production assurance with orders is assessed as sufficient, which is accompanied by increased expectations about the activity over the next 3 months . The uncertain economic environment continues to be the main factor, limiting the activity followed by factor ‘other’ pointed out respectively by 55.9% and 34.2% of the enterprises .  As regards the selling prices in industry, the prevailing managers’ expectations are for preservation of their level over the next 3 months.

Construction. In June, the composite indicator ‘business climate in construction’ increases by 14.4 percentage points (Annex, Figure 6) which is due to the improved construction entrepreneurs’ assessments and expectations about the business situation of the enterprises. According to them, the new orders inflow at the last month are increased, and the forecasts about the activity over the next 3 months are optimistic . The most serious problems for the business development remain the uncertain economic environment, shortage of labour and factor ‘others’.  Concerning the selling prices in construction, the managers foresee them to remain unchanged over the next 3 months.

Retail trade. The composite indicator ‘business climate in retail trade’ increases by 15.8 percentage points as a result of the more favourable retailers’ assessments and expectations about the business situation of the enterprises. Their opinions about the volume of sales over the last 3 months, as well their expectations over the next 3 months are also more positive.    The main obstacle for the activity in the sector remains the uncertain economic environment followed by the insufficient demand and competition in the branch. As regards the selling prices, certain expectations for an increase are registered, although the majority of the managers foresee preservation of their level over the next 3 months.

Service sector. In June, the composite indicator ‘business climate in service sector’ increases by 7.0 percentage points which is due to the more positive managers’ expectations about the business situation of the enterprises over the next 6 months. At the same time, certain improvement in their expectation about the demand of services over the next 3 months is observed. The most serious problems for the business of the enterprises remain connected with the uncertain economic environment, insufficient demand and the factor ‘others’. Concerning the selling prices in the sector, the managers’ expectation are them to remain unchanged over the next 3 months.

Source: National Statistical Institute