Businesses positively assessed their results in April: who showed the most optimistic results
Kyiv • UNN
For the second month in a row, the business has been positive about its performance, having adapted to the war, supported by international financing, improved logistics, growing demand and lower inflation, despite damaged infrastructure, high logistics costs and wages, and a shortage of skilled workers.
For the second month in a row, businesses have been positive about their operations, having adapted to the war. The optimism is supported by international financing, improved logistics, rising demand, and lower inflation. At the same time, damaged infrastructure, high logistics and wage costs, and a shortage of skilled workers are holding back development. This is evidenced by the NBU's business activity expectations index, UNN reports.
Details
Construction companies showed the most optimism about their economic prospects, supported by budget funding for infrastructure rehabilitation, growing domestic demand, and favorable weather conditions, with the sectoral index at 53.4 in April. Respondents expected an increase in construction activity and new orders, despite high costs and limited access to raw materials.
Services companies experienced an improved economic outlook due to seasonal increases in demand, the expansion of the sea corridor, and slowing inflation, with the sectoral index rising to 53.1 in April. They also anticipated an increase in new orders and services provided.
Trade enterprises lowered their positive assessments due to increased logistics costs associated with the blockade of the western border, with the index falling to 51.8 in April. Although they were less confident about the increase in turnover, positive forecasts for the value of goods purchased for sale remained, but estimates of trade margins weakened.
Industrial enterprises remain optimistic about their future performance, thanks to improved logistics, stable consumer demand, and slowing inflation, with the sectoral index at 51.7 in April. They anticipate an increase in production and new orders, including exports. Industrialists also expressed concern about the decline in work in progress and raw material inventories. Expectations for finished goods inventories remain at the same level as last month.
Against the backdrop of high growth rates in procurement prices, companies in various sectors expect further increases in the price of their products or services. The situation on the labor market remains unstable: while representatives of the construction industry expect a slight increase in the number of employees, retailers and other sectors forecast a slight reduction in staff.
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