Business Conjuncture, December 2016

In December 2016 the total business climate indicator remains to its level from the previous month. An improvement of the business conjuncture is registered in industry and construction, while in retail trade and service sector a decrease is reported.

Industry. The composite indicator ‘business climate in industry’ increases by 2.3 percentage points in comparison with November which is due to the improved industrial entrepreneurs’ assessments and expectations  about the business situation of the enterprises. However, the production assurance with orders is assessed as slight decrease, which is accompanied with decreased expectations about the production activity over the next 3 months.

The uncertain economic environment continues to be the most serious problem limiting the activity of 46.4% of the enterprises.

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

Construction. In December the composite indicator ‘business climate in construction’ increases by 1.2 percentage points as a result of the favourable construction entrepreneurs’ assessments and expectations about the business situation of the enterprises. Their opinions about the present construction activity, as well as their forecasts over the next 3 months are also more moderate.

The main obstacles for the business development remain connected with the uncertain economic environment and the competition in the branch.

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

Retail trade. The composite indicator ‘business climate in retail trade’ drops by 5.2 percentage points compared to the previous month which is due to the worsened retailers’ assessment and expectations about the business situation of the enterprises. Their forecasts about the volume of sales and orders placed with suppliers over the next 3 months are also more reserved.

The competition in the branch, uncertain economic environment and insufficient demand continue to be the most serious factors limiting the activity of the enterprises.

As regards the selling prices the prevailing retailers’ expectations are for preservation of their level over the next 3 mounts.

Service sector. In December the composite indicator ‘business climate in service sector’ decreased by 1.3 percentage points mainly due to the more unfavourable managers’ expectations about the business situation of the enterprises over the next 6 months. Their opinions about both the present and expected demand for services are also more reserved.

The main obstacles for business development remain connected with the uncertain economic environment and the competition in the branch, although in the last month the inquiry registers a decrease of their negative impact.

Concerning the selling prices in the service sector the majority of the managers foresee them to remain unchanged over the next 3 months.

Source: National Statistical Institute