In May 2012 the total business climate indicator increases by 2.8 percentage points in comparison to the previous month which is due to the improved business climate in construction, retail trade and service sector.
Industry. The composite indicator “business climate in industry” in May preserves approximately the same level from the previous month. The inquiry registers a slight improvement of the managers’ assessments as regards the production activity of the enterprises and their expectations over the next 3 months are also for an increase. However, the production assurance with orders decreases due to the lower orders from abroad. An increase of stocks of finished goods is also recorded.
The uncertain economic environment and the insufficient domestic demand remain the factors limiting to the most extent the activity of the enterprises in the sector.
According to industrial entrepreneurs, the selling prices will increase over the next 3 months.
Construction. In May the composite indicator “business climate in construction” increases by 1.0 percentage points due to the shifting of the assessments about the present business situation from “good” and “bad” to “satisfactory” (normal for the season). The present construction activity improves (contraction of the activity continues to slow down) as an increase of received new orders is also registered (the balance indicator increases by 14.6 percentage points).
The inquiry registers a strengthening of the negative impact of the main factors limiting the activity in the sector - uncertain economic environment, financial problems, insufficient demand and competition in the branch.
With regard to the selling prices, the construction entrepreneurs expect certain decrease over the next 3 months.
Retail trade. The composite indicator “business climate in retail trade” increases by 10.3 percentage points which is due to the improved manager’ assessments and expectations about the business situation of the enterprises. Increased optimism in regard to the sales expectations and orders placed with suppliers over the next 3 months is observed. The major factors limiting the activity in the branch continue to be the uncertain economic environment, the insufficient demand and the competition in the branch as in May the negative impact of the last factor is strengthened (by 9.6 percentage points).
The expectations about price movements in the retail trade over next 3 months are for an increase.
Service sector. In May the composite indicator “business climate in service sector” increases by 1.8 percentage points in comparison with April due to the improved business manager’ assessments about the present business situation of the enterprises. With regard to the demand for services the present tendency is positive but the inquiry registers some fluctuations in the expectations for the next 3 months.
The factors limiting with the most extent activity of the enterprises remain the uncertain economic environment, competition in the branch and insufficient demand.
With regard to the selling prices in the service sector the prevailing expectations are for preservation of their level over the next 3 months.
Source: National Statistical Institute