Business is not optimistic for the next six months

In July 2009 the total business climate indicator decreased by 1.2 percentage points versus the previous month due to the negative development of the business situation in industry and retail. Variations in sectoral performance of the business climate in a positive direction in July reported in construction and services. This demonstrated to the National Statistics Institute. Composite indicator „business climate in industry“ in July fell by 4.3 points compared to June and now registers the lowest value of the deterioration of economic conditions in the industry. The decrease is due to both reduced estimates for this business managers of their condition, and expressed more pessimistic expectations for the change in the business situation over the next six months. In July business survey reported reduced production of industrial enterprises, although the reduction is a slower pace compared to the previous month. Provision of production with orders (measured in number of months) decreased from 5 in April to 4.4 months in July. The average supply of orders in 2008 was 5.9 months. Average capacity utilization in industry continues to decline and in July reached 63.9 percent. For the previous calendar year the average was 74.9 percent. Competitive position of companies as the domestic market and markets in countries in and outside the European Union have suffered a deterioration compared to the prior three months. In July, the main factors hampering activity in the industrial sector remain precarious economic environment and low demand from home and abroad, the problems associated with them have increased compared to the previous month. In this situation, the expectations of business managers for the next three months are slightly better, which is not accompanied by plans to increase employment in the sector. Industrial entrepreneurs actually provide further reduction of staff over the next three months. Regarding the balance of the sales price index for the second consecutive month is negative, ie businesses that provide a reduction of more than those who think that prices will increase in coming months. In July 2009 composite indicator „business climate in construction“ rose by 2.4 points compared to June due to some optimism in the increasing expectations of business managers of state enterprises over the next six months, indicating an improvement of 6.5 points. This optimism is associated with more expected to maintain this (already reduced) construction activity over the next three months than its increase. In July, the survey recorded a reduction of production with supply contracts and increasing the number of clients with delay in payments. Expectations for staff in the direction of its decrease over the next three months. With the greatest weight among the reasons hampering activity in the sector continue to be precarious economic environment and lack of financial security. Prices on construction and industrial enterprises, which provide a reduction of more than those who think that prices will increase in coming months. Balance indicator for the eighth consecutive month with a negative value. Composite indicator „business climate in retail trade in July by 1.5 percentage points below the level of the previous month as a result of more reserved views of business leaders on current and expected business situation of enterprises in the next six months. Continues to reduce the volume of sales. Expectations for the next three months are not especially optimistic. Estimates of employment are less favorable and are expected to decrease. The most serious problem for retailers remains precarious economic environment. In July, reinforcing the negative impact of low demand and competition in the sector. With regard to prices in the retail trade is expected to maintain their level over the next three months. In July composite indicator „business climate in services“ increased by 1.6 percentage points compared to the previous month, due to the relatively better estimates of the economic managers of this business situation, ie fewer are those who point out that it was aggravated. The same applies to the relatively more favorable assessments of the demand for services over the past three months, ie fewer are those that indicate that demand has decreased. Has some deterioration in business expectations for the state enterprises over the next six months, and demand for services during the upcoming three months. Increasing expectations and to reduce staff. The main factors that hinder the activity of enterprises continued to be precarious economic environment and competition in the sector. As regards selling prices in the services sector is expected to retain their decline over the next three months.

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Finance