Industry and constructions are relaunched, lay-offs slow down

Publish date: 30-03-2010
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Companies in industry and constructions expect the increase of activity, the March bulletin for short term activities of BNR shows, drawing the attention that optimism could be stimulated by the increase of the number of working days against the previous month or the improvement of weather conditions.

"Expectations formulated by participants to the survey for short term activities made by BNR for March shows an optimistic perspective in both economic sectors, but it must mentioned the fact that this evolution incorporates the effect associated to the higher number of working days against the previous month but the positive influence induced by the improvement of weather conditions" the BNR survey published said.

Thus, as regards the volume of activity, short term balances reached +23% in industry and +44%in constructions. The companies of these sectors expect the increase of received orders, the industry benefiting the relaunch of foreign demand. Almost 45% of the industrial companies and almost two thirds of the construction companies mention the weak demand as main factor for limitation of activity.

Other negative factors on the activity in the two sectors, with cumulated share of almost three quarters in the Romanian economy are financial blockage (especially in constructions), banking interest, the evolution of exchange rate and insufficient raw materials.

As regards working force, the companies in industry will continue to have lay-offs, "but the process will have less intensity" while the reduction of the employees numbers will stop in constructions, under the conditions where the working season starts in this sector.

The BNR survey shows that production prices will increase while in constructions "it is less likely" to have price alterations.

"Expectations regarding the economic performance of the industrial sector improved by comparision to the previous month, the balance of opinions changing sign ( from -21% to + 17%). Although of less amplitude, an improvement of the indicator is expected in the domain of constructions" the report says.
The short term balance is the difference between the number of favourable and unfavourable opinions.

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