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TRENDS IN THE EVOLUTION OF THE ECONOMIC ACTIVITY IN THE PERIOD JUNE - AUGUST 2018: larger price increases in retail, slower job creation
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Increase of activity in construction and retail trade
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Moderate growth in the number of employees in construction, retail trade and services
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Price growth in retail trade
The company managers forecast price increases in all major sectors of Romania’s economy until August, the highest price growth rates being estimated in retail, and modest job creation, according to a survey released by the National Institute of Statistics (INS).
The adjusted series of the balances of answers, calculated as the difference between the weight of positive and that of negative answers in total answers, show that managers expect major price increases in retail (balance of answers +21 percent), moderate increases in constructions (+14 percent) and modest price growth rates in manufacturing (+9 percent) and services (+4 percent).
In the previous report released one month ago, Romanian managers expected slower price increases in retail (+18 percent), but faster in constructions (+18 percent), manufacturing (+10 percent) and services (+7 percent).
This report show that market expectations could fuel inflation in Romania this summer, in a moment when the second-poorest country among the European Union member states has the highest annual inflation rate in EU, of 5.4 percent in May.
The managers also expect a slower increase of employment in most sectors: constructions (balance of answers +8 percent, compared to +9 percent in the previous report), manufacturing sector (+2 percent/+4 percent) and services (+7 percent/ 7 percent last month), and new jobs in retail (+12 percent/+5 percent last month).
High demand is expected to support the economic activity until August in constructions (+23 percent), retail (+19 percent), services (+13 percent) and manufacturing sector (+9 percent), the company managers forecast.