The economic situation in September 2021 is deteriorating
In September 2021, the overall business climate indicator decreased by 2.4 percentage points compared to August, the National Statistical Institute (NSI) announced.
A decrease in the indicator was observed in industry, construction and retail trade, and in the services sector it remained approximately at the level of the previous month. And managers in all business areas forecast rising prices.
Industry
The state of the “business climate in industry” decreased by 0.9 points, which is due to the more reserved assessments of industrial entrepreneurs for the current business situation of enterprises. According to them, the current production activity is slightly reduced, and their forecasts for the next three months are unfavorable.
The most serious difficulties for the activity remain related to the uncertain economic environment, labor shortage and insufficient demand from the country, indicated by 51.3, 24.9 and 24.0% of enterprises, respectively.
Regarding sales prices in industry, 15.6% of managers continue to expect them to rise in the next three months.
Construction
In September, the composite indicator “business climate in construction” decreased by 7.3 points as a result of more pessimistic assessments and expectations of construction entrepreneurs for the business condition of enterprises.
Their opinions about the new orders received in the last month are also negative, which is accompanied by slightly worsened expectations for construction activity in the next three months.
The main problem for business development continues to be the uncertain economic environment, followed by labor shortages and material prices.
Compared to August, the share of managers who forecast sales prices to increase in the next three months remains.
Retail
The indicator “business climate in retail trade” decreased by 2.6 percentage points, which is due to the more unfavorable assessments and expectations of retailers for the business condition of enterprises.
The survey also registered pessimistic opinions on both the volume of sales and orders to suppliers over the next three months.
The most serious difficulty for the activity of enterprises remains the uncertain economic environment, as in the last month there has been an increase in its negative impact.
In second and third place are insufficient demand and competition in the industry.
Retailers’ estimates of sales prices in the last month are on the rise, with 23.4% of managers predicting that they will continue to rise in the next three months.
Services
In September, the indicator “business climate in the services sector” remained approximately the same as in August.
Managers’ assessments of the current demand for services are shifting to more moderate opinions, and their expectations for the next three months are unfavorable.
The uncertain economic environment and competition in the industry continue to limit the development of business to the greatest extent, as compared to the previous month there is an increase in the negative impact of the factor “others”.
Regarding sales prices in the services sector, the survey reports some expectations for an increase in the next three months.
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