Business expectations in Ukraine worsened for the second month in a row.

In June, businesses again negatively evaluated the results of their activity. According to the NBU, index of expectations of business activity decreased to 43.6 from 48 in May. Rising costs due to electricity shortages and tariff increases, weak investment demand, and a significant shortage of skilled workers influenced the deterioration of expectations in all sectors.

Industrial enterprises lowered their estimates regarding the results of their activities in the near future: The sector’s index in June was 45.5 (in May, 48.8). Trade enterprises also maintained negative expectations: the index – 46.4 (in May, 47.7). Construction companies significantly weakened their ratings due to weak investment demand, prolonged power outages, and a lack of skilled workers: the sector index was 43 (in the previous month – 49.8).

For the second month in a row, enterprises in the service sector gave the most restrained assessment of their economic activity and worsened their expectations concerning economic prospects: The index fell to 39.7 from 47.2 in May.

Managers of enterprises in all sectors expect a reduction in the total number of employees, most significantly in the service sector.