In May 2013 the total business climate indicator decreases by 1.1 percentage points compared to its level from the previous month due to the more unfavourable business climate in industry and construction.
Industry. The composite indicator “business climate in industry” decreases by 4.4 percentage points in comparison with April which is due to the worsening managers’ assessments about the present business situation of the enterprises. The inquiry also registers a decrease of production assurance with orders which is accompanied by reduced expectations about the activity of enterprises over the next 3 months.
The uncertain economic environment and insufficient domestic demand continue to be the main factors pointed out of the industrial entrepreneurs as an obstacle for the business’ development in the branch.
As regards the selling prices the managers forecast preservation of their level over the next 3 months.
Construction. In May the composite indicator “business climate in construction” decreases by 1.9 percentage points due to the shifting of the construction entrepreneurs’ assessments about the business situation of the enterprises from “good” towards “satisfactory” (normal for the season). In their opinion the present construction activity in comparison with the previous month is improved, as their expectations about the next 3 months are the activity to keep the same level.
The most serious factor limiting the activity in the branch continues to be the uncertain economic environment whose negative influence increases by 4.0 percentage points. In the background remain the difficulties related to the financial problems, insufficient demand and competition in the branch.
Concerning the selling prices in the branch managers’ expectations are they remain unchanged over the next 3 months.
Retail trade. The composite indicator “business climate in retail trade” increases by 3.4 percentage points compared to the previous month which is due to the improved retailers’ expectations about the business situation of the enterprises over the next 6 months. The inquiry registers also increased optimism in retailers’ forecasts with regard to the sales and orders placed with suppliers over the next 3 months.
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 influence of the factor “competition in the branch” is reported (by 6.1 percentage points).
As regards the prices in the retail trade the 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 1.9 percentage points compared to April due to the shifting of the managers’ assessments and expectations about the business situation of the enterprises from “worse” towards preserving “the same”. As regards the demand for services the present tendency is estimated as improved, but the expectations over the next 3 months are more reserved.
The uncertain economic environment, competition in the branch and insufficient demand remain the main obstacles for the business development in the sector although in May a decrease of their negative impact is observed.
Concerning 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