In June 2014 the total business climate indicator decreased

In June 2014 the total business climate indicator decreased by 1.0 percentage point compared to its level from the previous month which is due to the more unfavourable business climate in industry and service sector.

Industry. The composite indicator “business climate in industry” decreased by 1.8 percentage points in comparison with May due to the more reserved industrial entrepreneurs’ assessments about the present business situation of the enterprises. At the same time the present production activity is assessed as slight improved and in the expectations about the business situation and the activity in the branch over the next months some optimism has been observed but it is more moderate compared to the previous inquiry.

The uncertain economic environment and insufficient domestic demand continue to be the main factors pointed out of the enterprises as an obstacle for the development of their business.

As regards the selling prices in industry the majority of the managers forecast preservation of their level over the next 3 months.

Construction. In June the composite indicator “business climate in construction” increased by 4.0 percentage points which is due to the more favourable construction entrepreneurs’ assessments and expectations about the business situation of the enterprises. In their opinion the present construction activity in comparison with the previous month has improved, but their forecasts over the next 3 months are more reserved.

The main factor limiting the activity in the branch remains the uncertain economic environment, though in the last month a decrease of its negative influence was observed. In the second and third place are the factors “competition in the branch” and “financial problems”.

Concerning the selling prices in construction the prevailing managers’ expectations are them to remain unchanged over the next 3 months.

Retail trade. The composite indicator “business climate in retail trade” remains approximately its level from the previous month. The managers’ assessments about the present business situation of the enterprises and their forecasts about the development of their business over the next 6 months remain favourable. At the same time and their expectations about the volume of sales  and orders placed with suppliers over the next 3 months are improved.

The most serious factors limiting the activity in the branch continue to be the uncertain economic environment, competition in the branch and insufficient demand, as in the last month the inquiry reports a decrease of the negative influence of the first factor.

With regard to the selling prices in the branch the retailers’ expectations are for preservation of their level over the next 3 months.

Service sector. In June the composite indicator “business climate in service sector” decreases by 5.6 percentage points in comparison with May due to the more unfavourable managers’ assessments and expectations about the business situation of the enterprises. As regards the demand for services the present tendency is assessed as decreased as their expectations over the next 3 months are also more reserved.

The uncertain economic environment remains the main factor, limiting the business’ development in the branch, followed by the competition in the branch.

Concerning the selling prices the managers foresee them to remain unchanged over the next 3 months.

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