Business continued to lack confidence in October

Take note – story published 1 year and 6 months ago

For the fifth consecutive month, business confidence indicators in October 2022 remained negative in all business sectors according to data in the business tendency surveys carried out by the Central Statistical Bureau (CSB).

Compared to September, indicators in construction, services sector and retail trade have improved slightly, but in manufacturing the business environment continues to worsen.

Business confidence indicators characterize general situation in the sector and they are acquired by carrying out business surveys in industry, construction, retail trade and services sector. If the indicator is above zero, the business environment is positive, if it is below zero, the business environment is negative.

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In October 2022 confidence indicator in retail trade, according to seasonally adjusted data, comprised - 1.2. Compared to September, business environment in retail trade has improved by 0.5 percentage points.

According to seasonally unadjusted data, the most optimistic in the services sector in September were entrepreneurs providing job-finding and labour recruitment services (13.6). They are followed by providers of insurance services (13.3), as well as providers of programming and broadcasting activities (13.2). The most pessimistic business environment in October was recorded in air transport sector (-41.3), telecommunication services (- 24.1), as well as in veterinary services (- 20.4). 

According to seasonally adjusted data, in October confidence indicator in construction comprised -15.5, which is an increase of 1.1 percentage points as compared to the previous month.

Construction activity in October was affected by the lack of labour force (33 % of respondents), insufficient demand (30 %) and lack of materials or equipment (22 %). Impact of financial difficulties and other factors was indicated by 24 % and 12 % of respondents, respectively (mainly rise in prices of building materials and energy resources was mentioned). In October, compared to September, the share of respondents whose construction activity is not restricted by any factor has reduced by 6 percentage points and dropped to 17 %.

In October the confidence indicator in manufacturing comprised - 9.0. This is the lowest value of this indicator since the middle of 2020. As compared to September, this indicator has dropped by 0.7 percentage points. 24 % of manufacturing enterprises have not felt any factor restricting economic activity. Insufficient demand and lack of materials or equipment as a restrictive factor was mentioned by 35 % and 24 % of enterprises, respectively. Lack of labour force, in turn, was mentioned by 18 % of respondents. Also other factors were mentioned, of which financial difficulties (13 %), geopolitical situation and rise in prices of energy resources.

In October 2022 the over-all economic sentiment indicator comprised 91.5, (91.0 – in the previous month).

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