In January, the total business climate indicator preserves approximately its December 2022 level

In January 2023, the total business climate indicator preserves approximately its December 2022 level. An increase of the indicator is registered in industry and retail trade, while a reduction is observed in the construction and service sectors, the National Statistical Institute said.

The uncertain economic environment continue to be the main factor limiting the activity in all sectors.

The composite indicator “business climate in industry” increases by 1.0 percentage point which is due to the favourable industrial entrepreneurs’ assessments and expectations about the business situation of the enterprises. At the same time, their forecasts about the export and production activity over the next 3 months are moderate.

In January, the composite indicator “business climate in construction” decreases by 0.8 percentage points as a result of the more reserved construction entrepreneurs’ assessments about the present business situation of the enterprises. Their opinions about the construction activity over the last 3 months are also negative, while their expectations about the activity over the next 3 months are slightly improved

The composite indicator “business climate in retail trade” increases by 1.9 percentage points due to the optimistic retailers’ expectations about the business situation of the enterprises over the next 6 months. However, their forecasts about the volume of sales and orders placed with suppliers over the next 3 months are more unfavourable.

In January, the composite indicator “business climate in service sector” decreases by 1.1 percentage points as a result of the shifting of the managers’ assessments and expectations about the business situation of the enterprises from ‘better’ towards preserving ‘the same’. However, their opinions about the demand for services over the next 3 months are improved.