In January 2013 the total business climate indicator decreases by 3.2 percentage points compared to its December 2012 level due to the more unfavourable business climate in industry and retail trade.
Industry. The composite indicator “business climate in industry” decreases by 1.9 percentage points in comparison with the previous month which is due to the more moderate manager’ assessments about the present business situation of the enterprises. The inquiry registers a decrease of the production activity and production assurance with orders. The average capacity utilization in January reached 71.4%, as regards the expected demand over the next months is foreseen a surplus of capacity.
In the expectations about the next 3 to 6 months the managers still keep some optimism about the development of the business despite their difficulties related to the uncertain economic environment and the insufficient domestic demand.
As regards selling prices the prevailing industry entrepreneurs’ expectations are for preservation of their level over the next 3 months.
Construction. In January the composite indicator “business climate in construction” preserves its December 2012 level. According to the managers’ assessments the present construction activity is decreased as compared to the previous month, but their forecast about the next 3 months are more favourable as a result of shifting of the opinions about the activity from decrease to keep the same.
In January the production assurance with orders is reserves and it is assessed to be 4.8 months. At the same time the expectations about new orders over the next 6 months are improved - the balance indicator increases by 14.8 percentage points.
The uncertain economic environment continues to be the main obstacles for the development of the business in the branch, followed by financial problems and competition in the branch.
The construction entrepreneurs do not expect an increase of the selling prices over the next 3 months.
Retail trade. The composite indicator “business climate in retail trade” drops by 12.2 percentage points compared to the previous month due to the shifting of the managers’ assessments and expectations about the business situation of the enterprises from “better” towards preserving “the same”. Concerning the sales and orders placed with suppliers over next 3 months the expectations are more reserved.
The main factors limiting the activity in the branch continue to be the uncertain economic environment and insufficient demand, as in the last month strengthen the negative impact of the second factor by 16.3 percentage points is registered.
The retailers expect the selling prices remain unchanged over the next 3 months.
Service sector. In January the composite indicator “business climate in service sector” remains approximately its December 2012 level. The balance indicator of the present business situation of the enterprises drops by 3.9 percentage points due to a shifting of the managers’ assessments to more moderate opinions. However they remain optimistic in prognoses about the development of the business as their expectations about the demand for services over next 3 months are improved.
The uncertain economic environment continues to be the most serious factor limiting the activity of the enterprises in the sector followed by the competition in the branch and insufficient demand. In the last month the enterprises also have more financial problems.
As regards the selling prices in the service sector most of the managers forecast preservation of their level over the next 3 months.
Source: National Statistical Institute