According to the National Statistical Institute (NSI) in May 2014 the total business climate indicator increases by 4.3 percentage points compared to its level from the previous month due to the more favourable managers’ opinions from all observed sectors - industry, construction, retail trade and service sector.
Industry. The composite indicator “business climate in industry” increases by 4.2 percentage points in comparison with April which is due to the more optimistic industrial entrepreneurs’ assessments about the present business situation of the enterprises. The inquiry reports a slight improvement as regards the present production activity and the expectations over the next 3 months are also for an increase of the activity.
The uncertain economic environment remains the main factor, limiting the business development in the branch, followed by the insufficient domestic demand.
Concerning the selling prices in industry the managers’ expectations are for preservation of their level over the next 3 months.
Construction. In May the composite indicator “business climate in construction” increases by 2.2 percentage points due to the more favourable construction entrepreneurs’ assessments about the present business situation of the enterprises. In their opinion the present construction activity is improved in comparison with the previous month, as their prognoses over the next 3 months remain optimistic, though more reserved compared to April.
The main obstacle for the business development in the branch continues to be connected with the uncertain economic environment. At the same time in the last month the inquiry reports strengthen the negative impact of the factor “competition in the branch” which shifts to the third place the factor “financial problems”.
As regards the selling prices in construction the majority of the managers expect them to remain unchanged over the next 3 months.
Retail trade. The composite indicator “business climate in retail trade” increases by 2.5 percentage points compared to the previous month which is due to the improved retailers’ assessments about the present business situation of the enterprises. However concerning the sales and orders placed with suppliers their expectations over the next 3 months are more reserved.
The uncertain economic environment remains the most serious factor limiting the activity of the enterprises. In the second and third place are the factors “competition in the branch” and “insufficient demand” which unfavourable influence decrease in the last month.
Concerning the selling prices in the branch the retailers’ expectations are for preservation of their level over the next 3 months.
Service sector. In May the composite indicator “business climate in service sector” increases by 8.2 percentage points in comparison with April due to the more optimistic managers’ assessments and expectations about the business situation of the enterprises. However, as regards to the present demand for services their opinions are more unfavourable, while their expectations over the next 3 months are improved.
The most serious factor, limiting the development of the activity in the branch continues to be the uncertain economic environment, followed by the competition in the branch and insufficient demand, as the last inquiry reports a decrease of the negative impact of the last two factors.
As regards the selling prices the managers foresee them to remain unchanged over the next 3 months.