Against July 2016, the economic sentiment indicator increased by 7 percentage points: the construction confidence indicator increased by 13, services confidence indicator – 10, industrial confidence indicator – 9 percentage points. The retail trade and consumer confidence indicators decreased by 3 percentage points.
The results of an opinion survey of industrial enterprise managers showed that in July, against June, business tendencies in industry improved. This was influenced by more optimistic expectations for production and better assessment of demand.
In July, against the previous month, changes in industrial production were moderate: 37% of the respondents indicated an increase in production, 19% – a decrease (a month ago, 34 and 16% respectively). Assessment of production demand improved: most (69%) of the enterprise managers stated that the demand was sufficient, 27% – that it was too low, 4% – that it was too high (a month ago, 71, 29 and 0%).
Expectations for production also improved: an increase in production in the coming months was expected by 30, a decrease – 10% of the respondents (a month ago, 34 and 16% respectively).
Expectations for exports remained almost unchanged: 26% of the enterprise managers expected an increase in exports, 14% – a decrease (a month ago, 28 and 15% respectively). Most (82%) of the enterprise managers did not plan on changing the number of employees, 14% – planned on increasing it.
In July, against the same period of the previous year, the construction confidence indicator increased by 13 percentage points. This was influenced by better assessment of the order books (demand) and more optimistic employment expectations.
In July, against the same period of last year, little change was observed for the volume of construction works: 32% of the respondents indicated an increase in the volume of construction works in the last 3 months, 11% – a decrease (a year ago, 37 and 13% respectively). However, assessment of the order books (demand) was much better than a year ago: 56% of the enterprise managers stated that demand was sufficient, 44% – gave bad assessment to the demand (a year ago, 39 and 61% respectively).
In July, 23% of the enterprise managers expected an increase in the number of employees, 7% – a decrease (a year ago, 21 and 14% respectively). An increase in construction order books in the coming months was expected by 25, a decrease – 11% (a year ago, 26 and 6% respectively). Most (78%) of the respondents expected construction work prices to remain unchanged, 19% – expected them to increase.
The survey of retail trade** enterprise managers showed that in July, against June, changes in business tendencies were moderate. In July, against the previous months, a decrease in the number of enterprises stating that their business situation improved was observed: improvement was indicated by 15, deterioration – 8% (a month ago, 21 and 10% respectively). Expectations for the changes in business situation for the coming months remained similar: 19% of the enterprise managers expected an improvement in their business situation, 7% – deterioration (in June, 20 and 8% respectively). In July, against June, more enterprises planned on purchasing more goods for resale: 18% planned on purchasing more goods for resale, 11% – less goods for resale (in June, 15 and 12% respectively).
Most (76%) of the enterprise managers did not plan on changing the number of employees, 16% – planned on hiring new employees. 5% of the enterprise managers planned on increasing the prices of goods sold, yet most (93%) did not plan on changing the prices.
The results of the survey of service sector enterprise managers showed that in July, confidence indicator increased by 2 percentage points. This was influenced by more optimistic expectations for services demand for the coming months: 30% of the enterprise managers expected an increase in demand, while 5% – a decrease (in June, 28 and 8% respectively). The largest increase in demand is expected in the enterprises engaged in transportation and storage, real estate, food and beverage service activities.
In July, the growth rate of service demand remained similar as in the previous month: 25% of the respondents indicated an increase in demand, 7% – a decrease (in June, 26 and 9% respectively). According to most (74%) of the enterprise mangers, their business situation remained unchanged in the last months, 21% of the respondents indicated an improvement, 5% – a deterioration in their business situation (in June, 73, 21 and 6% respectively).
19% of the respondents planned on hiring new employees in the coming months, yet most (71%) did not plan on changing the number of employees. An increase in prices for services provided in the short run was expected by 8, a decrease – 3%, while 89% of the enterprise managers did not plan on changing the prices.
