Romania's Oct business sentiment negative in construction

Most managers of construction companies foresee a sharp decrease of their economic activity in the next three months, with a negative balance of 21%, the statistical office, INS, said in a monthly business sentiment survey for October.

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 relative decline in the number of employees, with a negative balance of 7%. Prices of construction works are expected to grow strongly, with a positive balance of 27%.

The majority of managers of companies operating in the manufacturing industry expect relative stability of their production volumes, with a negative 1% balance, during the next three months. Regarding the number of employees, stability is also expected, with a negative balance of 4%, while prices of industrial products are expected to grow moderately, with a positive balance of 16%.

Most managers of retail companies expect relative stability of their economic activity over the next three months, with a positive balance of 4%. The volume of orders placed by traders to the suppliers of goods will remain relatively stable, with a positive balance of 4%. Employers forecast moderate growth in the number of employees in the next three months, with a positive balance of 12%. The managers expect that retail prices will rise strongly, with a balance of 30%.

Demand for services is expected to register relative stability in the next three months, with a flat balance of 0%. Also, relative stability in the number of employees is forecast, with a negative balance of 3%. According to the majority of interviewed managers in the sector, prices in the services sector will moderately grow in the following three months, with the positive balance here being 10%.

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

In September, most managers in retail anticipated business growth, while expectations were for a relative stability in the manufacturing and services sectors and a moderate decline in construction.