In May 2019, the total business climate indicator rose 1.3 percentage points compared to the previous month, which is due to improved business conditions in construction and retail, according to the National Statistical Institute (NSI).
The composite indicator "business climate in industry" has preserved its approximately its April level. The industrial entrepreneurs’ expectations about both the business situation of enterprises and their activity over the next three months remain favourable.
The main factors limiting the business development in the sector continue to be the uncertain economic environment and the labour shortage, with a decrease in their negative impact observed in May.
Regarding sale prices in the industry, managers expect them to remain unchanged over the next three months.
In May the composite indicator “business climate in construction” rose 6.9 percentage points as a result of the more optimistic estimates and expectations of construction entrepreneurs for the business situation of the enterprices. Their opinions about construction over the past three months, as well as their expectations for the next three months also improved.
The negative impact of the labour shortage factor increased last month, with 51.9% of managers reporting it as a major problem. Second and third come difficulties related to the uncertain economic environment and competition in the industry.
The composite indicator "business climate in retail trade" rose 2.1 percentage points due to improved retailers' assessments and expectations of the business situation of the enterprises.
Competition in the industry continues to be the main factor hampering business development, followed by uncertain economic environment and insufficient demand.
Retailers do not foresee a change in sales prices over the next three months.
In May, the composite indicator “business climate in the service sector” declined by 2.2 percentage points as a result of unfavorable managers' assessments of the current business situation of enterprises. The most serious problems for the enterprises’ activity remain the competition in the sector and the uncertain economic environment, although in the last month reduction of their unfavorable influence was reported.
Source: FOCUS News Agency