Against intensified attacks on the energy sector, businesses worsened their expectations in November.

The Business Expectations Activity Index (BAEI) decreased to 47.2 points in November, compared to 49.4 in October and 48.7 in September, the National Bank reported. The following factors had a negative impact on economic activity in November: ️intensification of hostilities; ️power outages due to Russian attacks on the energy system; increased costs for energy, labor, and logistics; accelerating inflation; ️significant shortage of qualified personnel; ️seasonal factors.

Only trade enterprises positively assessed their business activity: the sectoral index in November decreased to 51.4 (October – 51.9). Industrial enterprises weakened their assessments of economic prospects: the sectoral index was 46.7 (October – 49.8). The most pessimistic assessments of their current financial results were recorded among construction companies: the sectoral index fell to 43.6 (October – 49.6).

The situation in the labor market remains challenging. Therefore, respondents from all surveyed sectors expect a reduction in personnel, most significantly in the service sector.