Economic activity is gradually recovering in all sectors except for construction.

The business activity expectations index rose to 45 last month from 37.5 in January 2023. According to the NBU, the main obstacles to enterprise recovery are the shortage of electricity, the increase in the cost of manufactured products due to the purchase of alternative energy and fuel sources, and low consumer demand. Industrial enterprises moderated pessimistic expectations due to growth in the volume of manufactured products and the volume of new export orders. The negative expectations for this industry have significantly softened. In particular, forecasts for turnover, purchase volumes of goods for sale, and balance volumes have improved. Enterprises in the service sector have significantly moderated negative expectations in the volume of services provided, new orders, and services in progress. Construction enterprises, on the contrary, face strengthened negative expectations regarding the volume of completed construction and a decrease in demand.