In January 2022, the total business climate indicator increases in comparison with December 2021

In January 2022, the total business climate indicator4 increases by 1.5 percentage points in comparison with December 2021  as a growth of the indicator is registered in industry, construction and retail trade, according to the data of the National Statistical Institute.

Industry.
The composite indicator “business climate in industry” increases by 2.6 percentage points which is due to the reduced negativity in the industrial entrepreneurs’ assessments and expectations about the business situation of the enterprises. Their forecasts about the export and production activity over the next 3 months are also favourable.

 In the period October 2021 - January 2022, the production assurance with orders (measured in number of months) increases from 4.8 to 5.0, and the average capacity utilization increases by 0.8 percentage points and it reaches 75.0%.

The most serious difficulties for the activity of enterprices remain the uncertain economic environment, shortage of labour, factor “others” and incufficient domestic demand. Concerning the selling prices in industry, 28.6% of the managers continue to expect them to increase over the next 3 months.

Construction.

In January, the composite indicator ”usiness climate in construction” increases by 1.2 percentage points as a result of the improved construction entrepreneurs’ expectations about the business situation of the enterprises over the next 6 months.

The production assurance with orders is preserved compared to October 2021 and it is assessed to be 5.7 months. At the same time, the managers expect increased inflow of new orders over the next 6 months, which, according to them, will lead to an increase of the activity in the short-term. The uncertain economic environment continues to be the main problem for the business development, followed by costs of materials and shortage of labour.

As regards the selling prices, the construction entrepreneurs’ expectations are them to continue to increase over the next 3 months.

Retail trade.

The composite indicator “business climate in retail trade” increases by 1.8 percentage points which is due to the favourable retailers’ expectations about the business situation of the enterprises over the next 6 months. Their forecasts about the orders placed with suppliers from both domestic and foreign market over the next 3 months remain positive.

The most serious obstacle limiting the activity remains the uncertain economic environment pointed out by 61.0% of the enterprises. In the last month, strengthening of the negative influence of the factor “competition in the branch” is registered, which shifts to the third place the difficulties connected with the insufficient demand.

Concerning the selling prices, 30.5% of the retailers forecast them to increase over the next 3 months.

Service sector.

In January, the composite indicator “business climate in service sector” decreases by 0.6 percentage points as a result of the shifting of the managers’ expectations about the business situation of the enterprises over the next 6 months from “better” towards preserving “the same”.

As regards the demand for services the present tendency is assessed as improved, while the expectations over the next 3 months are reserved.

The factors “uncertain economic environment” and “competition in the branch” continue to limit with most extent the business development in the sector. In comparison with December 2021, the managers’ share who foresee the selling prices to increase over the next 3 months is growing.