According to the NSI the total nominal increase of investments in 2006 in comparison with the previous year is expected to be 11.7%.
The NSI investment business survey carried out among industrial enterprises in the second half of April this year, collected information about investment plans of those enterprises for 2006.
The share of the private sector in the total volume of expected expenditures of acquiring fixed tangible and intangible assets in 2006 reaches 73.6%. Managers in this sector foresee an increase of their investment programs by 8.3% against 2005, and in public sector of industry the expected growth of investments is 22.6%, which is mainly due to energy sector.
According to the product orientation of production the energy and water-related industries cover the greatest relative share of expected investments in 2006 (42.7%) with expected growth of 27.7% against 2005. Second in terms of the projected volume of investments (with 35.9% relative share) are industries, producing intermediate goods, which foresee an advance by 15.0% in comparison with the previous year. The industries producing food and beverages and the industries producing non-durable consumer goods come next with a total 15.5% relative share in the expected investments in 2006. Managers in these industries foresee a drop of their investment programs against 2005.
In May 2006 the economic conjuncture was improved. The total business climate indicator increased by 3.6 percentage points against its April level.
Business climate in industry
The composite business climate indicator in industry increased by 2.6 percentage points in comparison with April due totally to higher expectations about the business situation of industial enterprises over the next 6 months.
The main factors limiting the activity continued to be insufficient demand, financial problems and the uncertain economic environment.
According to the opinions of industrial managers a slight increase of selling prices over the next three months was expected.
Source: NSI
