In March 2012 the business conjuncture in the country has improved slightly. The total business climate indicator increases by 2.3 percentage points in comparison with its February level due to the more favourable business climate in retail trade and in service sector.
Industry. The composite indicator “business climate in industry” preserves its level from the previous months. The inquiry registers optimism among certain managers with regard to the business situation of the enterprises over the next 6 months, although as far as the present business situation is concerned their opinions are reserved. At the same time in March the production activity and orders from abroad are shrinking.
The main problems for the development of the business in the sector remain the uncertain economic environment and the insufficient domestic demand.
The majority of the industrial entrepreneurs do not intend to increase selling prices in the branch over the next 3 months.
Construction. In March 2012 the composite indicator “business climate in construction” approximately preserves its February level. The present business situation of the enterprises is assessed as satisfactory or bad and construction activity - as shrunk. The uncertain economic environment, financial problems and insufficient demand remain the main factors limiting the activity in the sector as in March their negative influence is increasing.
However expectations of construction entrepreneurs about the business situation of the enterprises over the next 6 months and about construction activity are optimistic. At the same time, the inquiry reports a decrease of the number of clients with delay in payments.
With regard to the selling prices in construction there are no expectations about an increase over the next 3 months.
Retail trade. In March the composite indicator “business climate in retail trade” increases by 2.4 percentage points compared to the previous month due to the slightly improved assessments and more optimistic expectations about the business situation of the enterprises. Increasing optimism in retailer’s forecasts as regards both the volume of sales and the orders placed with suppliers over the next 3 months is registered.
The main obstacle to the business development in the sector continues to be the uncertain economic environment. However in the last month the negative impact of the factor “competition in the branch” has strengthened by 11.5 percentage points, shifting to third place the factor “demand”.
With regard to the selling prices the retailers do not expect an increase over the next 3 months.
Service sector. In March the composite indicator “business climate in the service sector” increases by 9.2 percentage points in comparison with February due to the shifting of managers’ assessments and expectations about the business situation of enterprises from “worse” to remaining “the same”. With regard to the demand for services over the next 3 months their expectations are optimistic which refrains them from forecasts for laying off the personnel.
The uncertain economic environment continues to be the most serious factor limiting the activity of enterprises, followed by the factors “competition in the branch” and “financial problems”.
Prevailing managers’ expectations with regard to the selling prices in the service sector are for preservation of their level over the next 3 months.