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Industrial Barometer: Powerful March growth of Romanian industry not sustained in April
Romanian industry grew in April too, but the powerful March advance could not be sustained and the volatility of the first four months of the year raise question marks, according to the monthly industrial barometer made by IRSOP and SNSPA and released on Thursday. An index based on the net ratio between answers signals expansion if it is over 50 points and contraction if it goes under 50.
“Almost all indicators measured by the barometer depreciated and high volatility of the first four months raise the question if speed losses signal foggy situations or temporary drawbacks. Data seem to indicate a weakening of domestic and foreign demand. The managers’ confidence in future demand remains stable,”the report shows.
Output volume dropped from 65 points in March to 60 in April and stocks went up from 46 to 50, based on high activity in March.
However, activity volume in the first four months remains higher than in the same period of 2017, according to the report.
New orders dropped from 63 to 59.
“We are speaking about all new orders, regardless of their being domestic or foreign. For activity increase, order drops have the effect of the wind that blows from the front,” the report shows.
The number of employees showed a slight increase tendency from 48 in December 2017 to 56 in March, but dropped to 52 in April.
“However, on the overall, the number of employees remains relatively non elastic in relation to order and production volume fluctuations in industry. Consequently there is little hope for higher budget incomes based on increase of employee number,” the report shows.
At the same time, the managers’ optimism index remained at the same value as in March - 66 points, 5 points less than in January. The index value results from engaging the managers’ distinct expectation on demand, output and future incomes.
The Barometer was made by IRSOP & SNSPA, Management Faculty on a sample of 300 industrial companies, representative for the level of the 15,200 industrial forms with over 9 employees in Romania, which generate 95% of business in industry.