Business in Aug improves assessment of prospects against background of favorable external environment – NBU

KYIV. Sept 1 (Interfax-Ukraine) – The National Bank of Ukraine’s (NBU) Business Activity Expectations Index rose to 53.4 in August from 50.8 in July, the highest level since October, according to a survey of businesses conducted by the national bank.

"In August, businesses improved their assessments of their economic standing amid favorable external conditions, robust consumer demand, higher public expenditures on infrastructure development, and the ongoing rebound of investment activity," the NBU said on its website.

"Industrial businesses showed the most optimism about their economic performance and prospects, with the sector’s index at 54.3 in August, up from 51.9 in July. As in previous months, respondents projected an increase in the volume of manufactured products and new orders, including exports. For the first time in a year and a half, the industry sector was upbeat about hiring," the report says.

"Among all sectors, service providers showed the highest increase in optimism about their economic outlook, with the sector’s index rising to 54.1 in August from 50.1 in July. Respondents gave positive assessments of their volume of services provided and the volume of new orders and services being processed," the NBU said.

"Construction companies were positive about their performance for the fourth straight month. In August, the sector’s index came out at 53.0, down from 55.6 in July. Respondents continued to rate their construction volumes and new orders as high, and were optimistic, for the third month running, about the total number of staff," according to the document.

"For the first time since April this year, trade companies evaluated the results of their economic activity as positive. The sector’s index increased to 51.1 in August from 49.7 in July. Respondents improved their expectations about the volume of trade and purchases of goods for sale. However, despite being confident about their business activity, they did not expect an increase in the total number of employees," the report reads.

"Against the backdrop of strong expectations that prices for raw materials would rise, businesses across all sectors projected higher prices for their products/services. However, as expectations of more expensive contractor services abated, construction companies were more restrained in saying that prices for their products/services would increase," it says.

This survey was carried out from August 5 through August 25, 2021. A total of 322 companies were polled. Of the companies polled, 42.9% were industrial companies, 29.5% companies in the services sector, 22.7% trading companies, and 5% construction companies, while 35.7% of the respondents were large companies, 29.2% medium companies, and 35.1% small companies.