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.
Retail on the rise
In December 2022 the confidence indicator in retail trade, according to seasonally adjusted data, comprised 7.2. Compared to November, business environment in retail trade has improved by 3.0 percentage points, and this is the highest value of the indicator in 2022.
Services positive for the first time since February
In the services sector, the seasonally adjusted confidence indicator in December 2022 was positive (1.9) and business environment of entrepreneurs, compared to November, has improved by 2.2 percentage points.
"As usual, indicators of environment differ significantly in various services sectors, and also trend of their changes differ depending on the specificities of the sector and seasonal impact. According to seasonally unadjusted data, the most optimistic in December, the same as a month ago, were providers of insurance services (18.6). They are followed by entrepreneurs, which are engaged in postal and courier activities sector (13.1), however, in this sector environment is not so optimistic as in December 2021, when in restricted face-to-face retail conditions environment indicator in postal and courier activities sector had reached a record high value of 35.8. The most pessimistic business environment in December was registered in accommodation (- 42.0), air transport sector (- 37.8), as well as in catering (- 30.7)," said the CSB.
Construction confidence worsening
According to seasonally adjusted data, in December confidence indicator in construction comprised -14.6, which is a decrease of 2.1 percentage points as compared to the previous month.
"Construction activity in December was restricted by bad weather conditions (47.5 % of respondents), insufficient demand (32.4 % of respondents), lack of labour force (indicated by 27.3 % of respondents), lack of materials or equipment (11.7 % of respondents). Impact of financial difficulties and other factors was indicated by 16.0 % and 9.7 % of respondents, respectively (mainly rise in prices of building materials was mentioned). In turn, 11.9 % of entrepreneurs indicated that construction activity is not restricted by any factor," explained the CSB.
Manufacturing low but stable
According to seasonally adjusted data, in December confidence indicator in manufacturing comprised - 8.8. As compared to November, it has increased by 0.6 percentage points. According to seasonally unadjusted data, compared to the previous month, confidence indicators have risen by their share in largest manufacturing sectors – manufacture of fabricated metal products, except machinery and equipment (of 4.3 percentage points), manufacture of chemicals and chemical products (4.7 percentage points) and manufacture of furniture (of 9.1 percentage points). In turn, business environment has worsened in manufacture of food products (of 1.4 percentage points), manufacture of wood and of products of wood and cork (1.0 percentage points) and manufacture of non-metallic mineral products (3.7 percentage points).
In December 2022 the overall economic sentiment indicator comprised 91.6, up on 91.1 in the previous month. The economic sentiment indicator characterizes the general socio-economic situation in the country, and it is calculated by the European Commission, Directorate-General for Economic and Financial Affairs for all EU countries according to a common methodology, taking 15 various seasonally adjusted components included in industry, construction, retail trade and services sector, as well as in consumer confidence indicator, as a basis.
