In February 2021, the total business climate indicator increases by 1.8 percentage points in comparison with the previous month. An improvement of the business conjuncture is registered in construction and service sector, while in industry and retail trade the indicator remains approximately to its January level.
Industry
The composite indicator “business climate in industry” remains approximately to its level from the previous month. The industrial entrepreneurs are moderate in their assessments about the present production activity, while their expectations about the activity over the next 3 months are more favourable . The uncertain economic environment continues to be the main factor, limiting the business development pointed out by 52.3% of the enterprises. In the background remain the factors “insufficient domestic demand”, “others” and “insufficient foreign demand”. As regards the selling prices in industry, the managers’ forecasts are for slight increase, although the prevailing part of them expect them to preserve their level over the next 3 months .
Construction
In February, the composite indicator ‘business climate in construction’ increases by 3.6 percentage points which is due to the improved construction entrepreneurs’ expectations about the business situation of the enterprises over the next 6 months. Their forecasts about the construction activity over the next 3 months are also more optimistic, which is accompanied by certain expectations of additional hiring of personnel.
The main problem for the activity in the sector remain the uncertain economic environment, followed by a shortage of labour. At the same time, the last inquiry reports an increase of the unfavourable impact of the competition in the branch, which shifts to the fourth place the difficulties connected with the factor “others”.
Concerning the selling prices, the inquiry registers certain expectations for an increase, although the majority of the managers foresee them to remain unchanged over the next 3 months.
Retail trade
The composite indicator “business climate in retail trade” preserves approximately its January level. The retailers’ forecasts about both the volume of sales and orders placed with suppliers over the next 3 months are more favourable.
The uncertain economic environment continues to be the main factor limiting the activity of enterprises, as in the last month strengthen of its negative influence is observed. In the second and third place remain insufficient demand and competition in the branch.
As regards the selling prices, most of the managers do not foresee a change, although the share of them who expect an increase over the next 3 months is increased.
Service sector
In February, the composite indicator “business climate in service sector” increases by 5.3 percentage points as a result of the more favourable managers’ assessments and expectations about the business situation of the enterprises. As regards the demand for services, the present tendency is assessed as slight improved, as the expectations over the next 3 months remain optimistic.
The most serious difficulties for the activity of enterprises remain the uncertain economic environment, factor “others” , competition in the branch and insufficient demand, as the inquiry reports the reduction of the negative impact of the last factor .
Concerning the selling prices in the sector, the majority of the managers foresee them to remain unchanged over the next 3 months .