July economy: construction sector up while industry stagnates

The industry will stagnate in July compared to the previous month, while the construction sector follows an upward trend, despite the crisis, as summer is a traditional season for this activity, according to an analysis by the National Bank of Romania (BNR). The analysis centralizes the opinions of 420 company managers, who make up a representative national sample.

According to the interviewed managers, the economy was marked by a lack of orders in July, due to a significant drop in demand. Thus, the indicator that quantifies the level of orders fell over eight times. This is why the industrial activity will not rebound in the near future.

Over 42 percent of respondents consider low demand to be the main constraint for industrial activity, while for construction companies, this is a major factor for 54 percent of the interviewed managers. The financial deadlock is considered an unfavorable influence by 19 percent of all participants in this survey. High interest rates, the depreciation of the leu, and the lack of raw materials are the next factors blamed for Romanian industry's stagnation.

Business Standard