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Bucharest
September 17, 2021
BUSINESS

Financial gridlock continues, investments shrink

According to the Central Bank’s Conjuncture Bulletin,
most of the respondents from the industrial and constructions sectors do not expect variations in the number of employees.

The financial gridlock will continue, industrial companies will limit their investments, the reinvigoration of activity will be of a purely seasonal nature and managers from the industrial and constructions sectors state they do not expect price hikes – these are the main points of the Conjuncture Bulletin that the National Bank of Romania (BNR) published yesterday, hotnews.ro informs.
Likewise, approximately 94 per cent of the total number of respondents from the industrial sector and 91 per cent of the total number of respondents from the constructions sector will not change their production prices in August. In the constructions sector the investments will move downward and the break in the growth of industrial production will be mainly caused by the means of transport industry which will register the steepest drop, the Bulletin adds. Similar developments but of a lower intensity are also expected by managers from the food, beverages and tobacco industry, textile industry, ready-made clothes industry, leather and shoe industry, metallurgy industry, metallic constructions and metal products industry.
More significant recoveries in production are registered in the wood processing industry and in the production and distribution of electricity and heating, natural gas and hot water. Production is expected to stagnate in the extractive sector, the oil and coal processing industries, the processing of nuclear fuel industry and the recordings industry.
In what concerns raw materials, stocks will remain within normal limits in the industrial sector, the BNR document adds. “Negative influences of relatively low amplitude will be caused by the high bank interest rates, the evolution of the national currency’s exchange rate but also by the difficulties registered in procuring raw materials,” the BNR Bulletin reads.
Likewise, small-scale layoffs are expected in August in the extractive sub-sector, the oil and coal processing industry, the processing of nuclear fuel industry, the metallurgic industry, the metallic constructions and metal products industry, capital.ro informs. The number of employees will remain on an upward trend in the calculator technology and radio-TV sets industry and in the production and distribution of electricity, heating, natural gas and hot water. “The number of employees will remain at the level seen the month before in at least 88 per cent of the total number of companies in the construction materials industry, car industry, electrical appliances and equipments industry, chemical industry, rubber and plastic processing industry, means of transport industry and recordings industry,” the BNR Bulletin reads.
The participants to the poll invoke the limitative effect that the deficient demand has on the two sectors’ activity. This opinion is shared by 37 per cent of the respondents from the industrial sector and 51 per cent of the respondents from the constructions sector.

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