In March 2022, the total business climate indicator decreases by 4.8 percentage points in comparison with February as a result of the unfavourable business climate in industry, retail trade and service sector.
Industry. The composite indicator “business climate in industry” drops by 7.1 percentage points. The industrial entrepreneurs’ assessments about the present business situation of the enterprises are reserved, as their expectations over the next 3 months are also worsened. At the same time, their forecasts about the production activity over the next 3 months are pessimistic.
The main obstacles for the activity of the enterprises remain connected with the uncertain economic environment, shortage of labour, factor “others” and insufficient domestic demand, as the inquiry reports an increase of the negative influence of the first factor.
In comparison with previous month, the managers’ share who forecast the selling prices in the industry to increase over the next 3 months is raising and its reaches 29.4%.
Construction. In March, the composite indicator “business climate in construction” preserves its level from the previous month. The construction entrepreneurs’ expectations about both the business situation of the enterprises over the next 6 months and their activity over the next 3 months are favourable.
However, the last inquiry reports an increase in the number of clients with delay in payments. The uncertain economic environment, costs of materials and shortage of labour continue to be the main factors limiting business development, as in the last month, strengthening of the negative impact of the first two factors is observed.
As regards the selling prices in construction, 53.2% of the managers foresee them to increase over the next 3 months.
Retail trade. The composite indicator “business climate in retail trade” decreases by 7.8 percentage points, which is due to the reserved retailers’ expectations about the business situation of the enterprises over the next 6 months. Their assessments about the volume of sales over the last 3 months, as well their expectations over the next 3 months, are also more moderate.
The most serious obstacle, hindering the activity, continues to be the uncertain economic environment, pointed out by 70.7% of the enterprises. In the background remain the difficulties connected with the competition in the branch and insufficient demand.
The retailers’ expectations about the selling prices over the next 3 months are in a direction of an increase.
Service sector. In March, the composite indicator “business climate in service sector” decreases by 2.1 percentage points as a result of the unfavourable managers’ expectations about the business situation of the enterprises over the next 6 months. Their opinions about the present and expected demand for services are also more moderate.
The main problems for business development continue to be connected with the uncertain economic environment and competition in the branch. As regards the selling prices in the sector, 23.6% of the managers expect them to increase over the next 3 months.