Recent poll shows bleak perspectives for Romania’s industry

23 January 2020

The industrial activity plunged in December 2019 after four months of decline and the decrease in the orders placed by foreign partners reached a historical record, revealed the latest Industry Barometer in Romania, compiled by the National School of Political and Administrative Studies (SNSPA) and IRSOP polling agency, released on Wednesday, January 22, quoted by Agerpres

According to the poll among managers in industry, the production volume index decreased to 40 points (the share of managers indicating they produced more), 10 points below the 50-point benchmark indicating steady performance.

At the same time, the new orders (domestic and export) index fell from 53 in November to 40 in December 2019 (60% of managers pointing to lower orders) and predictably the lack of orders will be felt in the following months.

In particular, the export orders index is at a historical minimum of 32 points (only one third of managers received more orders from abroad).

“The brutal fall shows that the industry has largely decoupled from the external market. It is difficult to assume how and when the export activity will be restored,” concluded the Barometer.

On the other hand, imports of raw materials contracted massively, from an index of 56 in November, to 45 in December.

"When orders evaporate, managers reduce or stop imports and restore them if new orders appear on the horizon. The gap has implications on the volume of activity," is the conclusion of the interviewed persons. In terms of labor force, the number of employees remained in the contraction area with 47 points, given that, for almost two years, the employment indicator signaled that the managers rather keep instead of increasing the current number of employees.

Lay-offs, amid repeated declines in activity that culminated in the December 2019 contraction, are possible, the report concludes.

(Photo: Pexels.com)

editor@romania-insider.com

Normal

Recent poll shows bleak perspectives for Romania’s industry

23 January 2020

The industrial activity plunged in December 2019 after four months of decline and the decrease in the orders placed by foreign partners reached a historical record, revealed the latest Industry Barometer in Romania, compiled by the National School of Political and Administrative Studies (SNSPA) and IRSOP polling agency, released on Wednesday, January 22, quoted by Agerpres

According to the poll among managers in industry, the production volume index decreased to 40 points (the share of managers indicating they produced more), 10 points below the 50-point benchmark indicating steady performance.

At the same time, the new orders (domestic and export) index fell from 53 in November to 40 in December 2019 (60% of managers pointing to lower orders) and predictably the lack of orders will be felt in the following months.

In particular, the export orders index is at a historical minimum of 32 points (only one third of managers received more orders from abroad).

“The brutal fall shows that the industry has largely decoupled from the external market. It is difficult to assume how and when the export activity will be restored,” concluded the Barometer.

On the other hand, imports of raw materials contracted massively, from an index of 56 in November, to 45 in December.

"When orders evaporate, managers reduce or stop imports and restore them if new orders appear on the horizon. The gap has implications on the volume of activity," is the conclusion of the interviewed persons. In terms of labor force, the number of employees remained in the contraction area with 47 points, given that, for almost two years, the employment indicator signaled that the managers rather keep instead of increasing the current number of employees.

Lay-offs, amid repeated declines in activity that culminated in the December 2019 contraction, are possible, the report concludes.

(Photo: Pexels.com)

editor@romania-insider.com

Normal
 

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