Банкеръ Weekly



In June managers of industrial companies assessed in more positive terms the performance of their companies and were more optimistic about the next six months, as a result of which the statistical business climate parameter continued to improve. This emerges in the June business poll of the National Statistics Institute (NSI) released last Wednesday.
Since May 2001, monitoring in industry is co-financed by the NSI and the European Commission under an agreement between the two institutions.
Another parameter, security, has also improved from a month earlier, mostly as a result of the reduction of stocks of finished products in June and the better expectations for production activity in the next three months. The third parameter, level of orders, remains practically unchanged.
The respondents in the poll generally assess as better production activity in industry compared to the previous month. There are no inflationary expectations with regard to sale prices of the finished products. The main problem remains low demand on the domestic market. The poll showed that the business climate in construction remained favourable. After a dramatic improvement of most parameters for several months in a row to all-time highs for some of them, the June levels were generally lower. Statisticians say this is a result of the blending of positive assessments and more moderate expectations.
Insolvent clients remain the biggest hurdle for construction companies, as it has been for years. Price pressure in the construction business and retail trade are not expected. In June the business climate in retail trade remained relatively unchanged. So did the expectations for sales and orders to suppliers in the coming months, and the factor impeding business activity.

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