In February 2012 the total business climate indicator marked a decrease by 2.4 percentage points compared to its level from the previous month, as National Statistical Institute conjuncture inquiries registered a worsening business climate in construction, retail trade and the services sector.
Industry. Only the composite indicator “business climate in industry” preserved its level from the previous months. In February the production activity and orders decreased, but the stocks of finished goods rose. However, over the next months managers expect some recovery of the activity.
The uncertain economic environment remains the main factor limiting the activity of companies. Even though in the last month its negative impact decreased, it has remained above its long-term average for the last 10 years. Also the unfavorable influence of the second strongest factor “insufficient domestic demand” has strengthened.
Most of the managers do not expect a change in the level of the selling prices over the next 3 months.
Construction. In February 2012 the composite indicator “business climate in construction” decreased by 2.3 percentage points in comparison with January, which is due to shifting of the opinions about the present business situation of companies from “good” to “normal for the season”. According to the construction entrepreneurs assessments, present construction activity is lower as compared to the previous month, but the forecasts about the next 3 months are more favourable (the balance indicator goes up by 8.8 percentage points).
The uncertain economic environment and the financial problems continue to be the main factors limiting the activity in the construction sector followed by the insufficient demand. “Weather conditions” stand out as the fourth factor having a negative impact on the activity of companies in February, pointed out by 43.9% of the heads.
The expectations of the managers regarding the selling prices in construction are for a certain decrease over the next 3 months.
Retail trade. The composite indicator ;business climate in retail trade; decreased by 1.9 percentage points in comparison with the previous month which is due to the worsening of the managers’ assessments about the present business situation of companies. At the same time, the inquiry registers a reduction in the volume of sales over the last 3 months and increased level of stocks. However, the retailers expressed optimism in their prognosis about development of the business situation as their expectations are for some recovery about the sales and orders placed with suppliers over the next 3 months.
The main problems for the development of the business in the sector continue to be the uncertain economic environment, the insufficient demand and the competition in the branch.
By the last inquiry data an increase of the retail trade prices over the next 3 months is not expected.
Service. In February the composite indicator "business climate in services sector" decreased by 7.6 percentage points as compared to the previous month. The managers’ assessments and expectations about the business situation of companies are worse. The survey records a decreased demand for services over the last 3 months and relatively moderate expectations for the next 3 months.
The most important factor limiting the activity in the sector continues to be the uncertain economic environment whose negative influence increased and over the last month reached its maximum value (74.9%) since the beginning of the services survey. At the same time, in February the negative influence of the factors “financial problems” and “insufficient demand” strengthened.
With regard to the selling prices in the services sector, the prevailing expectations are for preservation of their levels over the next 3 months.