The business climate improves by 2.1 points in May compared to the previous month, according to NSI data.
Highest growth is recorded in construction. Only in retail trade is reported a decline. An increase in prices is not expected in any sector over the next three months, only in the services sector, there are expectations for a slight appreciation of the services.
In May the composite indicator “business climate in the service sector” increases by 0.9 percentage points due to more favorable evaluations and managers’ expectations about the business situation of enterprises. Their views on service demand have improved, with the forecast that this will continue in the next three months. Competition in the industry and the uncertain economic environment continue to be major obstacles to activities in the sector.
Because of the optimistic estimates of industrial entrepreneurs for the current business situation of enterprises, the business climate indicator in this sector increased by 1.4 points. There is some improvement in production provision with orders, which is accompanied by favorable expectations of production activity over the next three months. The uncertain economic environment and labor shortage continue to be the main factors limiting the enterprises.
Business climate in construction rose by 8.1 points compared to April due to improved assessments and expectations about the business situation of enterprises. In their opinion, the current construction activity has increased and their forecasts for the next three months remain favorable. The main factors limiting the activity in the sector continue to be related to the uncertain economic environment, competition in the industry and labor shortages.