IN AUGUST 2025, THE TOTAL BUSINESS CLIMATE INDICATOR REMAINS APPROXIMATELY TO ITS LEVEL FROM THE PREVIOUS MONTH
In August 2025, the total business climate indicator remains approximately to its level from the previous month (from 20.6% to 20.2%). An increase of the indicator is observed in the industry and in service sector, while in the construction and in retail trade a reduction is registered.
Industry. The composite indicator ‘business climate in industry’ increases by 0.9 percentage points (from 17.4% to 18.3%) as a result of the improved industrial entrepreneurs’ expectations about the business situation of the enterprises over the next 6 months. The present production activity is assessed by managers as favourable and their forecast over the next 3 months are also for slight increase. The uncertain economic environment and shortage of labour continue to be the main obstacles for the business development. The prevailing part of the managers expect the selling prices in the industry to remain unchanged over the next 3 months.
Construction. In August, the composite indicator ‘business climate in construction’ decreases by 3.0 percentage points (from 27.9% to 24.9%) (Figure 6), which is due to the unfavourable construction entrepreneurs’ assessments and expectations about the business situation of the enterprises. At the same time, their expectations about the construction activity over the next 3 months are more moderate. The main factors, limiting the activity in the sector are the shortage of labour and the uncertain economic environment, followed by the costs of materials. The construction entrepreneurs’ expectations concerning the selling prices over the next 3 months are in a direction of an increase.
Retail trade. The composite indicator ‘business climate in retail trade’ decreases by 1.4 percentage points (from 25.0% to 23.6%) as a result of the reserved retailers’ assessments about the present business situation of the enterprises. However, their forecasts about both the volume of sales and orders placed with suppliers over the next 3 months are improved. In the last month an increase of the negative influence of the factor ‘uncertain economic environment’ is observed, which shifts to the second place the competition in the branch. In the background remain the insufficient demand and shortage of labour. Regarding the selling prices, 87.3% of the retailers foresee them to preserve their level over the next 3 months.
Service sector. In August, the composite indicator ‘business climate in service sector’ increases by 0.8 percentage points (from 15.1% to 15.9%) as a result of the more positive managers’ assessments about the present business situation of the enterprises. However, their opinions about the expected demand for services remain unfavourable. The most serious difficulties for the business development continue to be the uncertain economic environment, competition in the branch and shortage of labour. The majority of the managers do not foresee a change in the selling prices in the service sector over the next 3 months.
