In February, Ukrainian businesses upgraded their assessments of their economic activity,

although they remained cautious, mostly staying below a neutral level. The business activity expectations index in Februrary 2025 was 46.9, compared to 41 in January 2025 and 47.5 in February 2024, as reported by the National Bank. The positive shift in expectations across all sectors was driven by a revival in domestic demand, an increase in production volumes, and a rise in the supply of goods. However, business activity continued to be hampered by factors such as shelling of critical infrastructure, rising business costs for labor, heating, and electricity during the winter, labor shortages, and inflationary pressures.

According to the NBU:

1. The industry sector displayed the most optimism (50.2), buoyed by growth in demand and production.
2. The trade sector significantly improved its assessments (49.2), thanks to a sufficient supply of goods.
3. The construction sector slightly softened its assessment (44.7), but challenges remain due to seasonal factors and labor shortages.
4. The services sector maintained the most subdued optimism (42.2), given high costs and labor shortages.