The Total Business Climate Indicator Decreases by 3.7 Percentage Points in Comparison with February
In March 2020, the total business climate indicator decreases by 3.7 percentage points in comparison with February which is due to the worsened business climate in industry, retail trade and service sector, NSI said in a press release.
The composite indicator ‘business climate in industry’ decreases by 5.2 percentage points as a result of the pessimistic industrial entrepreneurs’ assessments and expectations about the business situation of the enterprises. According to them, there is a decrease of the production assurance with orders, which is also accompanied by reduced expectations about the activity and the personnel over the next 3 months.
In the last month the unfavourable influence of the factor ‘uncertain economic environment’ is strengthened, which shifts to the second place the difficulties of the enterprises connected with the shortage of labour. Concerning the selling prices in industry, the prevailing managers’ expectations are them to remain unchanged over the next 3 months.
In March the composite indicator ‘business climate in construction’ increases by 1.4 percentage points which is mainly due to the favourable construction entrepreneurs’ assessments about the present business situation of the enterprises. In their opinion, there is some increase in the new orders inflow at the last month, and their expectations about the construction activity over the next 3 months are improved.
The inquiry registers a strengthen of the negative impact of the factor ‘shortage of labour’, as 52.2% of the managers is pointed out it as main problem for their activity. In second and third place remain the difficulties, connected with the uncertain economic environment and competition in the branch.
As regards the selling prices, the managers foresee them to preserve their level over the next 3 months.
The composite indicator ‘business climate in retail trade’ drops by 6.6 percentage points as a result of the more unfavourable retailers’ assessments and expectation about the business situation of the enterprises. Their forecasts about the volume of sales and the orders placed with suppliers (from both domestic and foreign market) over the next 3 months are also more reserved.
The competition in the branch continues to be the main problem for the business development. An increase of the negative influence of the factor ‘uncertain economic environment’ is reported, which shifts to the third place the difficulties, connected with the insufficient demand.
As regards to the selling prices, the majority of the retailers expect them to remain unchanged over the next 3 months.
In March, the composite indicator ‘business climate in service sector’ decreases by 3.1 percentage points which is due to the reserved managers’ assessments and expectations about the business situation of the enterprises. As regards the demand of services the present tendency is assessed as slight reduced, while the expectations over the next 3 months are favourable.
The main factors limiting the activity remain connected with the competition in the branch, uncertain economic environment and shortage of labour. At the same time the last inquiry reports an increase of the unfavourable impact of the factor ‘insufficient demand’ (by 9.1 percentage points). Concerning the selling prices in the service sector, the managers foresee them to preserve their level over the next 3 months.
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