Business conjuncture, February 2019

In February 2019, the total business climate indicator remains to its level from the previous month. An improvement of the business conjuncture is observed in construction and services sector, while retail trade preserves approximately its January level. Only in industry, the indicator is reduced.

Industry. The composite indicator ‘business climate in industry’ decreases by 2.3 percentage points, which is due to the more unfavourable industrial entrepreneurs’ assessments and expectations about the business situation of the enterprises. At the same time, the inquiry registers certain worsening of the production assurance with orders, which is accompanied by reduced expectations about the activity over the next 3 months.

The uncertain economic environment and shortage of labour remain the main obstacles for the business development pointed out respectively by 35.3% and 33.9% of the enterprises.

As regards the selling prices in industry, the managers’ expectations are for preservation of their level over the next 3 months.

Construction. In February, the composite indicator ‘business climate in construction increases by 1.3 percentage points as a result of the improved construction entrepreneurs’ expectations about the business situation of the enterprises over the next 6 months. The inquiry registers an increase of the new orders inflow over the last month, as their forecasts about the activity over the next 3 months are optimistic.

The main factors limiting the enterprises in the sector remain the uncertain economic environment, shortage of labour and competition in the branch.

Concerning the selling prices in construction, the majority of the managers foresee them to remain unchanged over the next 3 months.

Retail trade. The composite indicator ‘business climate in retail trade’ preserves approximately its January level. The retailers’ forecasts about the business situation of the enterprises are more favourable. At the same time, their expectations about the volume of sales and orders placed with suppliers over the next 3 months remain optimistic.

The competition in the branch, uncertain economic environment and insufficient demand continue to be the main obstacles for the activity of the enterprises.

As regards the selling prices, the retailers expect certain increase, although the prevailing opinions are for preservation of their level over the next 3 months.

Services sector. Concerning the expected demand for services over the next 3 months their forecasts continue to improve, which according to them that will lead to additional hiring of personnel.  In February, the composite indicator ‘business climate in services sector’ increases by 3.4 percentage points which is due to the favourable assessments and expectations of the managers about the business situation of the enterprises.

The most serious problems for the enterprises’ activity remain the competition in the branch and uncertain economic environment.

The managers in the services sector foresee the selling prices to remain unchanged over the next 3 months.