In April 2022, the total business climate indicator increases by 4.2 percentage points compared to the previous month. An improvement of the indicator is observed in industry, retail trade and service sector, and in construction a reduction is registered.
Industry.
The composite indicator “business climate in industry” increases by 4.6 percentage points as a result of the reduced negativity in the industrial entrepreneurs’ assessments and expectations about the business situation of the enterprises. The inquiry reports certain improvement in the orders inflow over the last months, as the forecasts about the production activity over the next 3 months are favourable.
In April in comparison with January, the average capacity utilization increases by 1.3 percentage points and reaches 76.3%. The uncertain economic environment, shortage of labour and factor “others” continue to be the main problems limiting the business development. Concerning the selling prices the managers’ expectations are for them to continue to increase over the next 3 months.
Construction.
In April, the composite indicator “business climate in construction” decreases by 2.6 percentage points, which is due to the reserved construction entrepreneurs’ assessments and expectations about the business situation of the enterprises. The production is assured with contracts for 5.5 months as a decrease of 0.2 months compared to the assessment from January is registered. At the same time, the expectations about new orders over the next 6 months are more unfavourable. The most serious obstacle limiting the activity in the sector remains the uncertain economic environment, followed by the costs of materials and shortage of labour.
According to the last inquiry, the construction entrepreneurs’ share who continue to expect the selling prices in construction to increase over the next 3 months is 51.8%.
Retail trade.
The composite indicator “business climate in retail trade” increases by 10.6 percentage points as a result of the optimistic retailers’ assessments and expectations about the business situation of the enterprises. Their forecasts about both the volume of sales and the order placed with suppliers over the next 3 months are also improved.
The main factor, limiting the business development is the uncertain economic environment pointed out by 70.5% of the enterprises. In the last month, strengthening of the negative influence of the factor “insufficient demand” is registered which shifts to the third place the difficulties connected with the competition in the branch. As regards the selling prices, 37.1% of the retailers expect them to increase over the next 3 months.
Service sector.
In April, the composite indicator “business climate in service sector” increases by 3.5 percentage points, which is due to the positive managers’ expectations about the business situation of the enterprises over the next 6 months. Their opinions about the demand for services over the next 3 months are also favourable.
The uncertain economic environment continues to be the main obstacle for the activity of the enterprises, as compared to March an increase of its negative impact is observed. In the second and third place are competition in the branch and the factor “others”.
Concerning the selling prices in service sector 19.8% of the managers, foresee them to increase over the next 3 months.
Source: National Statistical Institute