The Overall Business Index Reached A New Long- Term Maximum
The economic situation has kept on improving during August 2006, announced the National Statistics Institute. The overall domestic business index has been on the rise by 4.8 points, and reached a new long- term maximum of 48.6%, since 1994. The overall index is the average arithmetical of the four economy branches of industry, construction, retail trade and service sector. The improvement is in view of the industry, construction and retail trade development.
The industry business climate is on the rise for a second consecutive month for the last 12 years and reached the index of 49.9%. The evaluation of the current as well as of the future economy situation has enhanced. The managers have quite an optimistic view on the domestic commissions, while the foreign commissions have remained at the same level.
The unfavouring factors that were affecting the situation in July, have diminished, but the competitive import, the labour force deficiency and the not so good equipment, as well as the economy legislation shortcomings impede the more efficient development.
As far as the retail prices are concerned, the industry managers believe their expectations are to be fulfilled.
The construction contractors work rises the construction business index by 2.2 points, as compared to the previous month. The constructions managers’ expectations about the current and following three- month period are propitious. The surveys, however, show that more customers have been late with their payments deposits during the last three months. The NSI surveys register a relatively high (1/5 of the construction companies) expect sales prices to go up.
The retail trade index has been no the rise by 1.7 points during August 2006. The improvement is due to the greater number of commissions. The number is expected to get higher during the following three months as well.
The shopkeepers say that the competition as well as the low demand are the main hindrances for the retail trade branch development.
The service sector business index dropped by 2.9 points, as compared to July 2006. The drop influenced on the managers evaluation and their expectation vary from improvement to no change.
The service demand has remained the same as that in July and is expected to keep the same level during the next three months (56.5% of the companies) or to go up (38.6% of the companies). One fourth of the branch companies stipulate that one third of the personnel will be dismissed. The services prices are not expected to go up.
