In April 2018, the total business climate indicatorincreases by 2.8 percentage points in comparison with the previous month  as a growth of the indicator is registered in all observed sectors - industry, construction, retail trade and services.  

Industry. The composite indicator ‘business climate in industry’ increases by 0.7 percentage points which is due to the optimistic industrial entrepreneurs’ expectations about the business situation of the enterprises over the next 6 months. At the same time, their forecasts about the export and the production activity over the next 3 months are more favourable.

In period January - April 2018 the surplus power is increased, and the average capacity in industry is assessed to 73.7%, which is by 3.1 percentage points below its January level.

The uncertain economic environment and the shortage of labour remain the main problems for the business development as the last inquiry registered strengthen of their negative influence.

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

Construction. In April the composite indicator ‘business climate in construction’ increases by 5.1 percentage points as a result of the improved construction entrepreneurs’ assessments and expectations about the business situation of the enterprises. In their opinion, the present construction activity is increased, as their forecasts about the next 3 months remain favourable.

The production assurance with orders is preserved compared to January and it is assessed to be 7.0 months. At the same time, the expectations about the new orders over the next 6 months are improved.

The main factors, limiting the activity in the sector continue to be connected with the uncertain economic environment, competition in the branch and shortage of labour.

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

Retail trade. The composite indicator ‘business climate in retail trade’ increases by 0.5 percentage points which is due to the improved retailers’ expectations about the business situation of the enterprises over the next 6 months. Their forecasts about the orders places with suppliers from both domestic and foreign market over the next 3 months are also more favourable.

The most serious difficulties for the business remain the insufficient demand, competition in the branch and uncertain economic environment, as in the last month a decrease of the negative influence of the first two factors is observed.

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

Service sector. In April the composite indicator ‘business climate in service sector’ increases by 7.1 percentage points  as a result of the optimistic managers’ assessments and expectations about the business situation of the enterprises. Their opinions about the present and expected demand for services are also improved.

The competition in the branch and uncertain economic environment continue to be the main obstacles for the activity in the sector.

Concerning the selling prices, the managers do not expect a change over the next 3 months.