The Year Begins with a Slight Improvement in the Business Climate

Business | January 30, 2020, Thursday // 16:29| Views: | Comments: 0
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In January 2020, the total business climate indicator increases by 1.4 percentage points in comparison with December 2019, which is due to the improved business conjuncture in industry.

Industry

The composite indicatorbusiness climate in industry’ increases by 5.0 percentage points as a result of the more optimistic industrial entrepreneurs’ assessments and expectations about the business situation of the enterprises. Their forecasts about the export and production activity over the next 3 months are also favourable. The average capacity utilization increases by 1.7 percentage points in comparison with 3 months earlier and it reaches 78.0%, as regards the expected demand over the next months a surplus of capacity is foreseen. The shortage of labour and uncertain economic environment continue to be the main obstacles for the business development pointed out respectively by 32.8% and 32.3% of the enterprises. Concerning the selling prices in industry, the prevailing managers’ expectations are them to remain unchanged over the next 3 months.

Construction

In January the composite indicatorbusiness climate in construction’ decreases by 1.0 percentage points, which is due to the more unfavourable construction entrepreneurs’ assessments about the present business situation of the enterprises. The production assurance with orders is preserved compared to October 2019 and it is assessed to be 8.5 months. At the same time the managers expect increased inflow of new orders over the next 6 months, which according to them will lead to improvement of the activity in the short term . In the last month the inquiry also reports a decrease in the number of clients with delay in payments. The most serious difficulties for the activity in the sector remain the shortage of labour, uncertain economic environment and competition in the branch.

As regards the selling prices in construction, certain expectations for an increase are registered, although the majority of the managers foresee preservation of their level over the next 3 months.

Retail trade

The composite indicatorbusiness climate in retail trade’ decreases by 1.9 percentage points as a result of the more reserved retailers’ assessments about the present business situation of the enterprises. Their forecasts about the business situation development over the next 6 months are preserved, as their expectations about orders placed with suppliers from domestic market over the next 3 months are also favourable. The competition in the branch continues to be the main factor limiting the business development, followed by the insufficient demand and uncertain economic environment. Concerning the selling prices, the retailers foresee certain increase over the next 3 months.

Service sector

In January the composite indicatorbusiness climate in service sector’ preserves its level from December 2019. The managers’ assessments and expectations about the business situation of enterprises are shifting to the more moderate opinions. At the same time, their forecasts about the demand for services over the next 3 months are more unfavourable. The main problems for the activity continue to be connected with the competition in the branch, uncertain economic environment and shortage of labour, although in the last month a decrease of their negative influence is reported. As regards the selling prices in service sector, the managers’ expectations are them to remain unchanged over the next 3 months.

More information can be found in the official National Statistical Institute press release.

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Tags: National Statistical Institute (NSI), business, indicator
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