In December 2014 the total business climate indicator decreased by 1.1 percentage points compared to the previous month due to the more unfavourable managers’ opinions in construction and retail trade.
Industry. The composite indicator ‘business climate in industry’ increased by 2.4 percentage points in comparison with November which was due to the slightly improved managers’ expectations about the business situation of the enterprises over the following 6 months. At the same time their prognoses regarding the production activity over the following 3 months were also favourable but were not accompanied by intention of additional hiring of personnel.
The main obstacles for the business development in the branch remained the uncertain economic environment and insufficient domestic demand, pointed out by 58.4% and 28.1% of the entrepreneurs respectively.
As regards the selling prices in industry the managers’ expectations were for them to remain unchanged over the following 3 months.
Construction. In December the composite indicator ‘business climate in construction’ droped by 8.2 percentage points due to the more pessimistic construction entrepreneurs’ assessments and expectations about the business situation of the companies. In their opinion the construction activity in comparison with the previous month was lower, as their forecasts over the following 3 months were also more reserved.
The main factor limiting the activity in the branch continued to be the uncertain economic environment. In the second and third place were the competition in the branch and financial problems, as in the last month a decrease of the negative impact of the first of them was registered.
Concerning the selling prices in construction the managers expected preservation of their level over the following 3 months.
Retail trade. The composite indicator ‘business climate in retail trade’ decreased by 4.6 compared to the previous month which was due to the more moderate retailers’ assessments and expectations about the business situation of the enterprises. Their forecasts regarding the volume of sales and orders placed with suppliers over the following 3 months were also more reserved.
The uncertain economic environment, competition in the branch and insufficient demand remained the main obstacles for the development of the activity in the sector, as in December strengthening of the unfavourable influence of the first two factors was observed.
The retailers’ expectations about the selling prices in the branch are them to remain unchanged over the next 3 months.
Service sector. In December the composite indicator ‘business climate in service sector’ increases by 2.4 percentage points due to the more favourable managers’ assessments and expectations about the business situation of the enterprises. At the same time certain improvement of their expectations as regards the demand for services over the next 3 months is observed but it is not accompanied by intention of additional hiring of personnel.
The most serious factor limiting the activity in the branch continues to be connected with the uncertain economic environment followed by the competition the branch.
Concerning the selling prices in the sector the managers expect preservation of their level over the next 3 months.
Source: National Statistical Institute