Business climate indicator increased in October

Business climate indicator among Serbian companies rose in October compared to September, according to a poll published in Macroeconomic Analysis and Trends. Sales expectations have climbed for two months in a row, while business risk expectations dropped. Business climate indicator increased in October However, exploitation of industrial production capacities decreased slightly and relatively high inflation expectations stayed the same. In October 2011, companies again cited lack of spare parts and processed materials as a bigger problem than availability of loans, which happened for the first time in the September poll. This is probably because importers are cautious when ordering goods due to low and unpredictable demand and uncertain payments. Based on the magazine's forecasts, industrial output is expected to rise 2.2 percent in 2011 compared to last year, while inflation will amount to 8.2 percent. Retail turnover is expected to record a nominal drop of 6.5 percent and a real drop of 17 percent this year compared to 2010. Foreign trade will also rise, with export of goods going up 14.5 percent and import 12.5 percent.

Business climate indicator increased in October

However, exploitation of industrial production capacities decreased slightly and relatively high inflation expectations stayed the same.

In October 2011, companies again cited lack of spare parts and processed materials as a bigger problem than availability of loans, which happened for the first time in the September poll.

This is probably because importers are cautious when ordering goods due to low and unpredictable demand and uncertain payments.

Based on the magazine's forecasts, industrial output is expected to rise 2.2 percent in 2011 compared to last year, while inflation will amount to 8.2 percent.

Retail turnover is expected to record a nominal drop of 6.5 percent and a real drop of 17 percent this year compared to 2010. Foreign trade will also rise, with export of goods going up 14.5 percent and import 12.5 percent.