Business sentiment has improved in manufacturing, construction and the service sector

Confidence index in March in retail seasonally adjusted was 1.8, down 1.3 percentage points from February. In the retail trade of both food and non-food goods, according to seasonally unadjusted data, business sentiment in March, compared to February, worsened by 1.6 and 0.2 percentage points, respectively, but was positive (1.4 and 1.7). Characteristic of the season, the confidence index in fuel retail increased rapidly, rising from -11.7 in February to 5.7 in March.

Since September 2023, businessmen’s mood in automobile trade has been negative, reaching its lowest point in January of this year (- 20.3). In March, compared to February, the confidence index decreased by 0.9 percentage points and is still very low (-17.1). On the other hand, in the trade of car parts and accessories, as well as their repair, the mood of entrepreneurs in March improved by 12.8 percentage points compared to the previous month, reaching a positive value of 12.2.

In the service sector in March, according to seasonally adjusted data, the confidence index was 2.7, and business sentiment has improved by 2.6 percentage points compared to February. As usual, sentiment indicators differ significantly in different service sectors, and the trends of their changes are also different depending on the specifics of the sector and the influence of the season.

The most optimistic in March according to seasonally unadjusted data were advertising and market research service providers (22.1), entrepreneurs in the computer programming industry (13.8), as well as those performing office administrative activities and other auxiliary activities of companies (13.5). On the other hand, the lowest indicators of sentiment in March, as in February, were in land and air transport services (respectively – 15.3 and – 15.8), however, in both of these sectors, the mood of entrepreneurs has improved compared to the previous month.

In general, in March, out of the 30 surveyed service sub-sectors, the mood of 17 entrepreneurs was positive, 13 – negative. Confidence indicators have increased in 15 sectors compared to February, decreased in 13, and remained unchanged in two, CSB informed.

In construction according to seasonally adjusted data, the confidence index was -10.2 in March, which has increased by 3.3 percentage points compared to the previous month.

In March, compared to February, based on seasonally unadjusted data, entrepreneurs’ assessment of the expected changes in employment in the next three months increased by 13.9 percentage points, while the assessment of the current total level of orders decreased by 0.3 percentage points. In March, compared to February, the confidence index increased in all construction sub-sectors: in engineering construction – by 11.2, in specialized construction works – by 6.5, and in building construction – by 2.0 percentage points.

In the manufacturing industry, since the beginning of the year, the mood of entrepreneurs has been improving every month

Manufacturing according to seasonally adjusted data, the confidence index in March was – 5.0. Compared to February, it increased by 1.0 percentage points.

In March, compared to February, according to seasonally unadjusted data, business sentiment increased in proportion in the largest manufacturing industries: food products production (by 4.0 percentage points), chemical substances and chemical products production (by 8.4 percentage points) and non-metallic mineral products production ( by 8.5 percentage points).

On the other hand, the sentiment worsened in the production of wood, wood and cork products (by 4.6 percentage points), in the production of metal products, excluding machinery and equipment (by 0.9 percentage points) and in the production of computers, electronic and optical equipment (by 7.6 percentage points).

In the manufacturing industry, the confidence index is calculated for 23 sectors. According to CSB data, in March, compared to February, there was an increase in the confidence index in 15 industries, a decrease in 6 industries, but in two industries the mood of businessmen did not change.