In December 2021, the total business climate indicator increases by 2.6 percentage points compared to the previous month. An improvement of the indicator is observed in construction, retail trade and service sector, while in industry a reduction is registered.
Industry.
The composite indicator “business climate in industry” decreases by 0.7 percentage points. The industrial entrepreneurs’ assessments about the present business situation of the enterprises are worsened, as their expectations about the next 6 months are more reserved. At the same time, the inquiry also reports certain decrease of the production assurance with orders. The uncertain economic environment and shortage of labour continue to be the main problems for business development. In the last month the negative influence of the factor “others” strengthen, which shifting to the fourth place difficulties, connected with insufficient domestic demand. In comparison with November, the share of managers who forecast the selling prices in industry to increase over the next 3 months is rising.
Construction.
In December, the composite indicator “business climate in construction” increases by 3.3 percentage points which is due to the more favourable construction entrepreneurs’ assessments and expectation about the business situation of the enterprises. According to them, the present production assurance with orders is preserved, and the forecasts about the construction activity over the next 3 months are shifted to the more moderate opinions. The most serious difficulties for the activity of the enterprises remain connected with the uncertain economic environment, costs of materials and shortage of labour, pointed out respectively by 63.6%, 50.3% and 40.0% of the enterprises. Concerning the selling prices in construction, 34.2% of the managers foresee them to increase over the next 3 months.
Retail trade. The composite indicator “business climate in retail trade” increases by 4.9 percentage points as a result of the improved retailers’ assessments and expectations about the business situation of the enterprises. Their forecasts about the volume of sales and the orders placed with suppliers over the next 3 months are also positive. The uncertain economic environment continues to be the main obstacle for the business development, as in the last month a decrease of its negative influence was registered. In the second and third place are the insufficient demand and the competition in the sector. The retailers’ assessments about the selling prices in the last month are in the direction of an increase, as 29.9% of the managers foresee them continue to rise over the next 3 months.
Service sector.
In December, the composite indicator “business climate in service sector” increases by 5.9 percentage points which is due to the optimistic managers’ assessments and expectations about the business situation of enterprises. Their opinions about the demand for services over the next 3 months are also favourable. The uncertain economic environment and competition in the branch remain the main factors limiting with the most extend the activity of the enterprises. Concerning the selling prices in the service sector, the managers’ expectations are for them to increase over the next 3 months.