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For the second month in a row, Ukrainian businesses express pessimism about their results.
The Business Activity Expectations Index (BOI) fell to 43.6 in June 2024 compared to 48.0 in May, indicating further deterioration.
According to data provided by Ukrainian News, the deterioration is linked to rising business costs due to power shortages caused by Russian attacks on the power system, rising tariffs, weak investment demand and a shortage of skilled workers.
Industry:
The indicator fell to 45.5 (from 48.8 in May). This is due to worsening security, power outages and rising production costs.
Trade:
The index fell to 46.4 (from 47.7), which is due to the complication of the energy supply situation, the increase in electricity tariffs and the deterioration of currency expectations.
Construction:
The sector showed a significant decline to 43.0 (from 49.8) due to weak investment demand, prolonged power outages and a shortage of skilled workers.
Services:
The most pessimistic sector with an index of 39.7 (from 47.2). The main reasons are the outflow of qualified personnel, increased costs due to a shortage of electricity and a decrease in demand.
Trends in the labor market: A decrease in the number of employees is expected in all sectors, especially in the service sector. Large enterprises make up 30.3% of respondents, medium enterprises – 27.6%, small enterprises – 42.0%. Export-import operations are carried out by 31.9% of companies, only export – 11.0%, only import – 18.4%, not engaged in foreign economic activity – 38.7%.
The survey was conducted from June 4 to 21, 2024, and 445 enterprises participated in it. The results reflect the opinion of the respondents – managers of enterprises, and not of the National Bank of Ukraine.
IODA is an important tool for operational assessment and tracking of economic trends. An index value above 50 indicates positive expectations, below 50 – negative.
Source:ukranews.
