Business conjuncture – the National Statistical Institute business surveys, July 2013

In July 2013 the total business climate indicator increases by 1.4 percentage points compared to its level from the previous month due to the improved business climate in industry and retail trade.

Industry. The composite indicator “business climate in industry” increases by 3.2 percentage points in comparison with June which is due to the more favourable managers’ assessments and expectations about the business situation of the enterprises. In their opinion the present production activity is improved, but their prognoses over the next 3 months are more reserved.

The average capacity utilization in July increases by 1.5 percentage points compared to April and it reaches 69.5%  as the enterprises report a surplus of capacity with regard to the expected demand over the next months.

The uncertain economic environment and insufficient domestic demand continue to be the main factors limiting the business development in the branch as in the last month strengthening of their unfavourable influence is observed.

As regards the selling prices the expectations of majority of the managers are that they are to remain unchanged over the next 3 months.

Construction. In July the composite indicator “business climate in construction” decreases by 1.8 percentage points due to the worsening construction entrepreneurs’ expectations about the business situation of the enterprises over the next 6 months. According to their assessments the present construction activity in comparison with the previous month is decreased and their expectations over the next 3 months are more reserved.

In July the production assurance with orders is preserved and it is assessed to be 4.9 months. At the same time the managers’ expectations about new orders over the next 6 months are more unfavourable.

The main factor limiting the activity in the branch remains the uncertain economic environment followed by the financial problems and insufficient demand.

Concerning the selling prices in construction the expectations are for preservation of their level over the next 3 months.

Retail trade. The composite indicator “business climate in retail trade” increases by 5.2 percentage points in comparison with the previous month which is due to the improved retailers’ assessments and expectations about the business situation of the enterprises. However their forecasts as regards the sales and orders placed with suppliers over the next 3 months are more reserved.

The main obstacle for the business development in the branch continues to be the uncertain economic environment. In the last month the inquiry registers strengthening of the negative impact of the factor “competition in the branch” by 3.0 percentage points which shifts to the third place the factor “demand”.

The managers’ expectations about the selling prices in the retail trade are that they are to remain unchanged over the next 3 months.

Service sector. In July the composite indicator “business climate in service sector” decreases by 2.8 percentage points compared to June due to the more unfavourable managers’ assessments and expectations about the business situation of the enterprises. However as regards the present and expected demand for services their opinions are improved.

The most serious factor, limiting the activity of the enterprises, continues to be the uncertain economic environment, which negative influence strengthens in the last month. In the second and third places are the “competition in the branch” and “insufficient demand”.

Concerning the selling prices in the service sector the managers’ expectations are for preservation of their level over the next 3 months.

Source: National Statistical Institute