Romania's Jan business sentiment declines in construction

Managers of construction companies foresee a drop in economic activity over the next three months, with a negative balance of 12%, the statistical office, 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.

Most managers in the construction sector anticipate a moderate decline in employee numbers, with a negative balance of 9%. Prices of construction works are expected to grow strongly, with a positive balance of 32%.

The majority of managers of companies operating in the manufacturing industry expect relative stability of their production volumes, with a flat balance of 0% during the next three months. Employee numbers are also expected to remain stable, with a negative balance of 1%, while prices of industrial products are expected to grow, as reflected by a positive balance of 21%.

Most retail company managers anticipate relative stability in economic activity over the next three months, as indicated by a positive balance of 1%. The volume of orders placed by traders to suppliers of goods is expected to stay relatively stable, with a positive balance of 3%. Employers project moderate growth in the number of employees over the next three months, with a positive balance of 10%. Managers expect a sharp increase in retail prices, as reflected in a positive balance of 45%.

Demand for services is expected to be relatively stable in the next three months, with a negative balance of 2%. Employment in the service sector is also expected to be relative stability, with a negative balance of 4%. According to most managers, prices in the service sector will grow moderately, with a positive balance of 17%.

A total of 8,961 managers of Romania-based companies operating in construction, manufacturing, retail and services took part in the survey.

Business sentiment in January remained mostly unchanged from the previous month, when most managers in services, manufacturing and retail expected relative stability, while those in the construction sector anticipated a decline.