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Business conjuncture - NSI business surveys, April 2013

In April 2013 the total business climate indicator decreases by 0.6 percentage points compared to its level from the previous month which is due entirely to the drop of the indicator in industry.

Industry. The composite indicator “business climate in industry” decreases by 4.2 percentage points in comparison with March due to the shifting of the managers’ opinions about business situation of the enterprises over the next 6 months form “better” towards preserving “the same”. The inquiry reports a slight improvement in their assessments as regards the production activity as well their expectations over the next 3 months remain favourable.

The average capacity utilization in April is by 3.4 percentage points below in January level and it reaches 68.0%. The enterprises report a surplus of capacity with regard to the expected demand over the next months, but should be noted that this surplus decreased over the last 3 months.

The main obstacles for the business development in the branch continue to be the uncertain economic environment and insufficient domestic demand, pointed out by 53.4% and 47.9% of the entrepreneurs respectively.

As regards the selling prices the managers expected preserving of their level over the next 3 months.

Construction. In April the composite indicator “business climate in construction” increases by 4.4 percentage points which is due to the more favourable construction entrepreneurs’ assessments and expectations about business situation of the enterprises. In the next half year managers expect increased inflow of new orders in construction which according to them will lead to a certain increase of the activity in the short term. However the inquiry reports an increase of the number of clients with delay in payments.

The main factor limiting the activity in the branch continues to be the uncertain economic environment, followed by financial problems, insufficient demand and competition in the branch.

Concerning the selling prices in construction the managers do not expect they go up over the next 3 months.

Retail trade. The composite indicator “business climate in retail trade” remains approximately to its level from the previous month. The retailers’ forecasts about business development in the branch over the next 6 months are more favourable. Increased optimism in their expectations as regards both the sales and the orders placed with suppliers over the next 3 months is registered.

In April the inquiry marks strengthen of the negative impact of the factor “uncertain economic environment” (by 24.3 percentage points) which shifts to the second place the enterprises’ difficulties related to the insufficient demand.

As regards the selling prices the majority parts of the retailers foresee preservation of their level over the next 3 months.

Service sector. In April the composite indicator “business climate in service sector” increases by 0.6 percentage points compared to its March level due to the more favourable managers’ expectations about the business situation of the enterprises over the next 6 months. Their opinions as regards the present and expected demand for services, however, are more reserved.

The factors limiting with the most extent activity of the enterprises remain the uncertain economic environment, competition in the branch and insufficient demand.

The managers’ expectations about the selling prices in the service sector are they to remain unchanged over the next 3 months.