Managers of Romanian businesses anticipate rising prices in February 2023, construction activities will decrease

The aftermath of worldwide inflation is coming for Romanian businesses, as most managers expect rising prices in all areas, says a new poll by the Romanian National Institute of Statistics.

According to the short-term survey, prices in sectors of manufacturing, construction, retail trade, and other services will continue to steadily rise, while the number of employees and economic activity in construction will decrease.

“According to the business tendency survey of December 2022, managers from the manufacturing industry forecast relative stability of the production volume for the next three months (balance -4%). Regarding the number of employees, relative stability is estimated, the balance being -1% per total manufacturing,” the survey reads.

In the retail trade, the managers estimated for the next three months a sharp increase in sales prices (short-term balance +43%). Similar robust growing trend forecast for services (+24%) and industrial product prices (+34%).

While the balance does not indicate the intensity of any statistical factors, the trend represents the personal views of companies’ managers and their response to the dynamics of a phenomenon.

Additionally, according to this month’s estimation, the number of activity and total employees in the construction industry will decrease in these three months, possibly due to the winter season. Although scientific researcher George Gârbacea predicted Romania to not be hit badly by bad weather, the forecast is not looking too friendly for physically consuming activities outside.

As a result, managers forecast a -24% decrease in the production volume of the construction activity and -an 11% in the number of employees.

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