NSI: In January Business Climate Indicator rises 1.9 pp
In January 2019, the total business climate indicator increases by 1.9 percentage points compared to December 2018 amid improvement in industry, construction and the services sector, the National Statistical Institute said.
In the industry, the indicator increases by 4.1 percentage points due to more optimistic expectations in the sector about the business situation of the enterprises in the next 6 months. The forecasts about exports and production in the next 3 months have also improved. The main negative factors in the sector remain the uncertain economic environment and labour shortage.
In construction, the composite business climate indicator increases by 1.2 percentage points on the back of more favourable expectations in the sector for the next 6 months. Construction is secured with longer-term contracts compared to 3 months ago - 5.6 months against 5.3 in October 2018. In the next half year, construction managers expect an increased number of new orders which implies increased activity in the short term. The selling prices in construction are expected to remain unchanged over the next 3 months.
In retail trade, there is a decrease of 1.7 percentage points amid less favourable assessments and expectations. Retailers' opinion about sales volumes and orders with suppliers in the next 3 months is also more reserved. They do not expect the selling prices to rise over the next 3 months.
In the services sector, the business climate improved by 1.2 percentage points, mainly due to better expectations in the sector for the next 6 months. Their forecasts about the demand over the next 3 months are also more optimistic, while selling prices are expected to remain at their current level.