BUSINESS CLIMATE

Business Conjuncture, December 2020


In December 2020, the total business climate indicator decreases by 1.7 percentage points in comparison with the previous month, show the data of the National Statistical Institute. A reduction of the indicator is observed in retail trade and in service sector, in construction preserves its level from November, and in industry an increase is registered.

Industry

The composite indicator ‘Business climate in industry’ increases by 2.6 percentage point as a result of the favourable managers’ assessments and expectations about the business situation of the enterprises. According to them, at the last month there is certain increase of the production assurance with orders, which is not accompanied by increased expectations about the production activity over the next 3 months.

The uncertain economic environment, factor “Others” , insufficient domestic demand, and insufficient foreign demand continues to be the main obstacles for the business development, as compared to the last month, the negative influence of the second factor is growing.

As regards the selling prices in industry, the managers’ expectations are for preservation of their level over the next 3 months.

Construction

In December, the composite indicator ‘Business climate in construction’ preserves its November level. Concerning present construction activity, the inquiry registers certain decrease in comparison with the previous month, as well as the forecasts over the next 3 months remain reserved.

The most serious difficulties for the activity of enterprises remain connected with the uncertain economic environment, shortage of labour and factor “Others” .

The prevailing part of the managers foresee that the selling prices in construction remain unchanged over the next 3 months.

Retail trade

The composite indicator ‘Business climate in retail trade’ decreases by 5.8 percentage points as a result of the unfavourable retailers’ assessments and expectations about the business situation of the enterprises. Their forecasts about the volume of sales and the orders placed with suppliers over the next 3 months are also more reserved.

The factor, limiting with the most extent the business development continue to be the uncertain economic environment, followed by insufficient demand and competition in the branch.

As regards the selling prices, the retailers’ expectations are for preservation of their level over the next 3 months .

Service sector

In December, the composite indicator “Business climate in service sector” drops with 7.8 percentage points, which is due to the more pessimistic managers’ assessments and expectations about the business situation of the enterprises. Their opinions about the present and expected demand for services are also negative.

The main problems for the activity remain connected with the uncertain economic environment, insufficient demand, factor “Others” and competition in the branch, although in the last month to report a decrease of the unfavourable impact of the last factor.

The majority of the managers foresee the selling prices in the sector to remain unchanged over the next 3 months.

 

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