Romania's Dec business sentiment declines in construction - survey

Managers of construction companies expect a drop in economic activity in the next three months, with a negative balance of 24%, INS said in a monthly business sentiment survey.

The balance is calculated as the difference between the percentage of respondents who expect positive developments and the percentage of those whose expectations are negative.

Managers in the construction sector anticipate a moderate drop in the number of employees, with a negative balance of 11%. Prices of construction works are expected to grow strongly, with a positive balance of 36%.

The managers of companies operating in the manufacturing industry expect relatively stable production volumes, with a negative 4% balance, during the next three months. Regarding the number of employees, stability is expected, with a negative balance of 1%, while prices of industrial products are expected to grow strongly, with a positive balance of 34%.

Managers of retail companies expect stability in their economic activity over the next three months, with a negative balance of 2%. The volume of orders placed by trade units to the suppliers of goods will maintain a stable trend, with a negative balance of 3%. Employers forecast stability in the number of employees in the next three months, with a positive balance of 4%. The managers expect that retail prices will rise strongly, with a balance of 43%.

Demand for services is also expected to register relative stability in the next three months, showing a negative balance of 3%. Also, a relative stability in the number of employees is forecast, with a negative balance of 2%. According to the interviewed managers in the sector, prices in services will grow in the following three months, with the balance here being 24%.

A total of 9,142 managers of Romania-based companies operating in construction, manufacturing, retail and services were interviewed in the survey.

In November, managers expected relative stability of their business in services, manufacturing and retail, while decline was projected in construction, according to earlier INS data.

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