Business Conjuncture, June 2013

In June 2013 the total business climate indicator decreases by 0.7 percentage points compared to its level from the previous month due to the more unfavourable business climate in construction, retail trade and service sector. There is some improvement of the business conjuncture only in industry.

Industry. The composite indicator “business climate in industry” increases by 2.0 percentage points in comparison with May which is due to the more optimistic managers’ assessments about the present business situation of the enterprises. The inquiry registers a certain improvement of the assurance of production with orders, both from the domestic and from abroad, which is not accompanied by increased expectations about activity of the enterprises over the next 3 months.

The main obstacles for the business development in the branch remain the uncertain economic environment and insufficient domestic demand pointed out respectively by 56.5% and 46.3% of the industrial entrepreneurs.

Concerning the selling prices in the branch the managers’ expectations are they to remain unchanged over the next 3 months.

Construction. In June the composite indicator “business climate in construction” decreases by 1.0 percentage points due to the more moderate construction entrepreneurs’ expectations about the business situation of the enterprises over the next 6 months. In their opinion the present construction activity in comparison with the previous month is improved, but their forecasts over the next 3 months are more reserved.

The uncertain economic environment remains the main factor limiting with the most extent the activity of the enterprises, followed by the financial problems, insufficient demand and competition in the branch.

As regards the selling prices most of the managers forecast preservation of their level over the next 3 months.

Retail trade. The composite indicator “business climate in retail trade” drops by 5.3 percentage points in comparison with the previous month which is due to the shifting of the retailers’ expectations about the business situation of the enterprises over the next 6 months from “better” towards preserving “the same”. Concerning the volume of sales and orders placed with suppliers over the next 3 months their forecasts are more reserved.

The most serious factor limiting the activity in the sector continues to be the uncertain economic environment whose negative impact increases by 12.7 percentage points. In the background remain the difficulties related to the insufficient demand and competition in the branch.

Concerning the selling prices the retailers do not expect an increase over the next 3 months.

Service sector. In June the composite indicator “business climate in service sector” decreases by 1.2 percentage points compared to May due to the worsening managers’ assessments about the present business situation of the enterprises. At the same time their opinions as regards the present and expected demand for services are also more reserved.

The uncertain economic environment remains the main factor limiting the business development. In the second and third places are the “competition in the branch” and “insufficient demand” as their negative influence strengthen in comparison with the previous month.

As regards the selling prices in the service sector the majority of the managers’ expectations are they to remain unchanged over the next 3 months.

Source: National Statistical Institute