Business softened the forecast of its activity, but it remained pessimistic
In September, business in Ukraine continued to soften estimates of business activity, as evidenced by the National Bank’s index of business activity expectations (IODA).
This is stated in the results of the NBU survey.
The index rose slightly to 48.7 compared to 48.4 in August, remaining below the neutral level.
Trade showed the greatest optimism. The sectoral index rose to 52.1 in September from 50.4 in August, thanks to buoyant consumer demand, ample supply of goods and expanding supply chains.
Industrial enterprises also improved their expectations due to robust demand and production ramp-up. The industrial index rose to 50.3 in September from 48.6 in August.
In construction, he reduced his expectations, although he maintained a positive mood thanks to budgetary investments in roads and infrastructure, as well as the seasonal factor. The sectoral index stood at 50.1, compared with 50.7 in August.
The biggest concern is the services sector, where negative expectations remain due to a shortage of personnel and rising labor and energy costs. The sectoral index fell to 44.6 from 46.5 in August.
In general, businesses forecast higher prices for their goods and services due to rising purchase prices, and the labor market remains volatile, especially in the service sector.
