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Number of companies in Romania estimating profit growth in 2017, down in last six months

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The number of companies active in Romania that expect a rise in profits has decreased in the last six months, from 21 pct, this year's spring, to merely 12 pct in September, according to the preliminary data of a specialist survey presented on Friday by Elena Badea, the Managing Director of Valoria research company, at the Business Challenge 2017 conference.

The autumn report on the evolution of businesses in Romania in 2017 also highlights the significant differences between the spring survey and the autumn one concerning the investment chapter.

"It ensues that firms hesitate to invest in the long term. Companies display a conservative behaviour and no longer have a psychological appetite to spend money on long term investment projections. 28 percent of the companies say no to investment in the upcoming period, as compared to the 10 pct recorded this spring. The industries behave differently," Badea mentioned.

As regards salaries, the survey shows that 31 pct of the respondent companies maintained they would operate increases, as compared to the answers in the spring edition of the survey, when 41 pct had been inclined to increase the monthly pay in their companies.

The questionnaire was devised by Valoria Business Solutions research company, from August 28 to September 18, 2017, on a sample of 308 respondents, 27 pct being foreign companies.

According to the results recorded in the "The business evolution in 2017 in Romania" survey — the spring edition, 43 companies were expecting 1-10 pct turnover growth this year.

At the same time, 32 pct of the respondent companies stated that the profit growth rate was due to range between 1 and 5 pct, while 20 pct of the companies were planning to increase investment by 5-10 pct, as compared to the previous year.

The conference is organised by BusinessMark, a company providing B2B integrated services.

"Is the start-up, small and medium-sized companies' segment favoured by the current socio-economic context?" or "What is the new hype in business and who are the "brains" ready to adapt to the new trends?" are questions that will be answered by those present at the specialist event.  

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