Business conjuncture in June, 2021 - NSI Business Surveys

In June 2021, the total business climate indicator decreases by 4.0 percentage points in comparison with the previous month , as a reduce of the indicator is registered in industry and construction.

Industry. The composite indicator ‘business climate in industry’ decreases by 8.4 percentage points as a result of the more unfavourable industrial entrepreneurs’ assessments and expectations about the business situation of the enterprises. The inquiry reports an improvement of the production assurance with orders , but that is not accompanied by increased expectations about the production activity over the next 3 months. The most serious problem for the business development in the sector continue to be the uncertain economic environment, followed by the insufficient domestic demand. In the last month strengthen of the negative impact of the factor ‘shortage of labour’ is observed, which shifts to the fourth place the difficulties, connected with the insufficient foreign demand . As regards the selling prices in industry, the managers’ forecasts are for certain increase, although the prevailing part of them expect them to preserve their level over the next 3 months .

Construction. In June, the composite indicator ‘business climate in construction’ decreases by 6.5 percentage points , which is due to the more reserved construction entrepreneurs’ assessments about the present business situation of the enterprises. However, their forecasts about both the business situation of the enterprises over the next 6 months and the construction activity over the next 3 months are favourable. The main factors limiting the activity remain connected with the uncertain economic environment, shortage of labour, competition in the branch and costs of materials, as compared to the previous month, an increase of their negative influence is reported . Concerning the selling prices, the share of the managers who expected an increase over the next 3 months is rising.

Retail trade. The composite indicator ‘business climate in retail trade’ preserves approximately its May level . The retailers’ forecasts about the business development over the next 6 month are unfavourable, as and their expectations about the volume of sales over the next 3 months are reserved. The uncertain economic environment continue to be the main obstacle about the activity, as in the last month a reduction of its negative impact is observed. In the second and the third place are insufficient demand and competition in the branch. As regards the selling prices, the retailers foresee certain increase over the next 3 months .

Service sector . In June, the composite indicator ‘business climate in service sector’ increases by 2.7 percentage points, which is due to the positive managers’ assessments about the present business situation of the enterprises. Their opinions about the present and expected demand for services are also favourable. The main difficulties of the enterprises remain connected with the uncertain economic environment, competition in the branch and the factor ‘others" . The prevailing part of the managers’ expect the selling prices in the service sector to remain unchanged over the next 3 months .