Ukraine’s business activity index has fallen to zero.

According to the Institute for Economic Research, the business activity recovery index in Ukraine also fell to zero in February, marking the worst result in the last two months. Consequently, the balance between those who reported an increase in activity compared to last year and those who noted a decline has leveled out.

In February, 21.1% of respondents indicated that their business activity is better than a year ago (down from 27.8% in January), while 20.7% said it worsened (up from 18.5%). Another 58.1% of respondents reported no changes in their activity.

The long-term uncertainty indicator (for two years ahead) decreased, suggesting an increase in business confidence for the future. In February, 79.5% of companies expected to maintain their current production levels over the next two years, while 15% plan to expand their operations. Furthermore, 36.1% of enterprises intend to boost their production output in the next 3-4 months, and 43.1% anticipate an increase in exports.

The biggest challenge for companies continues to be the shortage of labor; this figure was 65% in January and was 64% in February.