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Industrial barometer: Orders in industry still going slightly down; production costs still high


 Orders in industry were still going slightly down in November, with the production volume still the same as in October and September, while production costs remain high, according to the Industry Barometer in Romania, conducted by IRSOP & SNSPA - the Management Faculty, on Thursday.

The barometer signals that, in November, orders in industry were still going slightly down, with the production volume standing still against October and September. The first cause of the decline was the end of the year. The historic data of the Barometer showed that, typically, the industrial activity changes depending on the season - it drops towards the end of the year and it begins to recover in February or March the next year. The second cause could be the little growth recorded in the Eurozone in the 3rd quarter of 2018, with a direct impact on the orders in the Romanian industry. A 3rd factor is probably represented by the strong advance of production costs in 2018, especially by the growth in salaries and prices for raw materials.
Production volume stagnated between October and November at 57 points, the same source informs.

Stocks contracted to 49 points in September, 44 in October and returned to 48 in November.

Non-executed orders were also in the contraction area, but they grew up from 42 to 47 points in November.

New orders dropped from 59 in September down to 56 in October and 53 in November.

Orders for export also dropped from 57 in October down to 52 in November.

Imports of raw materials continued to drop from 62 in September down to 59 in October and 55 in November.

In what concerns the workforce, the number of employees contracted in November to 46 points, against 50 in September.

Production costs continue to be high - 69 points, also they dropped 3 points from October when their level was a record 72 points.

The global index of optimism of managers climbed from 61 in October up to 64 in November.

The barometer was conducted by IRSOP&SNSPA the Management Faculty on a sample of 300 industrial companies, which is representative for the 15,200 industrial companies with more than 9 employees in Romania, which generate about 95 per cent of the total industry turnover here. The data were collected through direct interviews with the managers of the companies between December 18-19, 2018.