In May, business sentiment in Ukraine stabilized, but exporters’ anxiety is increasing.

According to the Institute for Economic Research, the business activity recovery index in Ukraine in May was unchanged from April, remaining at 0.13. However, analysts observed the following trends:

1. The highest uncertainty over the next three months is reported among exporters, with 20.7% uncertain about their export dynamics in the coming 3-4 months.
2. The proportion of enterprises planning to reduce their activities in the two-year outlook has risen to 5%, but 95% of businesses neither foresee a decline nor forecast growth.
3. The shortage of personnel poses the main obstacle for 63% of businesses, a situation worsened by employee mobilization and departures.
4. The risks associated with work and the rising prices for raw materials and supplies are tied for second place among the challenges faced (47% each).
5. Power outages remain a relatively minor issue, mentioned by just 7% of respondents.

The significant portion of companies (53%) continues to operate at over 75% of their capacity. The percentage of companies that increased production in May decreased to 19.5%, while the proportion that cut production rose to 13.5%.