In August 2009 the total business climate indicator decreased by 1.3 percentage points in comparison with the previous month and recorded its lowest level (9.0 percentage points) since the beginning of the negative development of the business conjuncture in the country in October 2008, the National Statistical Institute said Friday.

The August inquiry registered slightly better assessments of the present business situation of the industrial enterprises which improve the level of the business climate indicator only by 0.3 percentage points (Figures 2 and 3). The managers state a decreased production activity but the decrease rate is lower than the previous months.

There is a certain improvement of the balance indicator of the expected production activity due to a shifting of the prognoses from "decrease of the production activity" to its preservation during the next 3 months. However the production assurance with orders continues worsening. The uncertain economic environment, the insufficient domestic and foreign demand continue to be the major factors hindering the activity in the industrial sector as in August the negative impact of the first two factors intensified.

With regard to the selling prices in industry, the expectations are for the preservation of their level over the next three months.

In August 2009 the composite business climate indicator in construction decreased by 2.3 percentage points in comparison with July due to an increase in pessimism of the managers' expectations about the business situation of the enterprises during the next six months (a decrease of 5.5 percentage points of the balance indicator).

The composite indicator "business climate in retail trade" is 2.4 percentage points lower than the level in July.

In August the composite business climate indicator in the service sector decreases by 2.3 percentage points in comparison with July which is due to the more unfavourable assessments of the present business situation of enterprises and tothe more pessimistic expectations about the next six months.

In comparison with July the entrepreneurs in the service sector continue to expect a decrease of the price level during the next three months.

Source: BTA