Business expects an increase in commodity prices and a reduction in production – the index of expectations of business activity

Business expects higher commodity prices and reduced production.

Deteriorating expectations affect businesses in almost all industries. This is evidenced by the index of expectations of business activity, which is calculated by the NBU.

In November, the index fell to 42.7 from 44.9 in October. The reason is the further destruction of critical infrastructure, logistics, the increase in production costs, as well as the decrease in the income of the population.

Also, enterprises of all sectors involved in the survey continue to expect a reduction in the total number of employees, the largest in the construction sector.

In addition, in the coming months, business may face another problem — an increase in taxes to “pre-war” levels. The parliament is discussing the cancellation of benefits for entrepreneurs, which were introduced after February 24 to support the country’s economy.

With the return of a high tax burden, entrepreneurs will have to raise prices even more and reduce production.