A monthly survey conducted by the Ukrainian National Bank showed the business activity expectations index or BAEI up 1.1 points from 50.5 in May to 51.6 in June. This is the highest figure since October 2019, in other words business confidence has now reached pre-pandemic levels even though quarantine and other restrictions which harm business are still in place.
Most surveyed sectors reported optimistic expectations – this was the case for the construction, industrial and services sectors. Companies in the trade sector on the other hand reported pessimistic expectations now for three consecutive months.
Residential housing and non-residential facilities construction companies reported a surge in optimism, their index figures moved from 49.4 in May to 58.1 in June. Those companies on average have plans to hire new staff. Real estate prices are currently rising fast in Ukraine, and in Kyiv especially, where housing prices are expected to rise almost 20 % this year.
Companies in all sectors expect that they will have to issue price hikes on the back of continued rising raw materials and supplier prices, which will contribute to rising inflation in Ukraine.
Apart from the construction sector, no sector reported plans to expand their workforces.
For more detailed information, refer to the National Bank´s survey results here.
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