In August 2021, the total business climate indicator decreases by 2.3 percentage points compared to the previous month, which is due to the worsened business climate in industry, retail trade and service sector.
Industry
The composite indicator “business climate in industry” drops by 1.5 percentage points as a result of the unfavourable industrial entrepreneurs’ expectations about the business situation of the enterprises over the next 6 months. At the same time, their forecast about the production activity over the next 3 months are reserved.
The uncertain economic environment continues to be the factor, limiting with the most extent the business development, followed by the shortage of labour and insufficient domestic demand
Construction
In August, the composite indicator “business climate in construction” increases by 0.7 percentage point which is due to the improved construction entrepreneurs’ assessments about the present business situation of the enterprises. However, their forecasts about both the business situation over the next 6 months and the construction activity over the next 3 months are more unfavourable.
The main obstacles for the activity of the enterprises remain the uncertain economic environment, shortage of labour, costs of materials and competition in the branch.
Retail trade
The composite indicator “business climate in retail trade” decreases by 5.7 percentage points as a result of the more reserved retailers’ expectations about the business situation of the enterprises over the next 6 months. Their forecasts about the volume of sales and the orders placed with suppliers over the next 3 months are also unfavourable.
The uncertain economic environment, competition in the branch and insufficient demand continue to be the main problems for the business development, as in the last month the inquiry reports strengthening of their negative influence.
Service sector
In August, the composite indicator “business climate in service sector” decreases by 3.7 percentage points which is due to the unfavourable managers’ expectations about the business situation of the enterprises over the next 6 months.
Their opinions about the present and expected demand for services are also more reserved. The most serious difficulties for the activity remain connected with the uncertain economic environment and competition in the branch.