The latest regular quarterly survey of company managers regarding their assessment of current and future business activity, inflation and exchange rate expectations, and changes in the business climate in the country was conducted in February 2013.

Disclaimer: The results of the survey reflect the opinions of respondents – Ukrainian business managers – as of February 2013, and do not represent the views and policies of the NBU.

Conclusions

According to the survey results, expectations about the volume of production of goods and services in Ukraine in the next 12 months increased.

Inflation expectations over the next 12 months approached the all-time minimum. An increase in production costs was named as the key factor for the expected inflation.

Respondents improved estimation of their own current financial and economic conditions. Balance of answers increased to 0.2% (from -2.8% in Q4 2012). The respondents reported decrease in inventories. It means demand was higher than supply.

Respondents improved their business expectations for the next 3 and 12 months. Business expectations index increased to 118.7% (from 114.3% in the previous quarter) due to growth of sales expectations and future financial and economic conditions.

Most of respondents expect deceleration of input and output prices growth over the next 12 months. Production costs will grow slower. The costs of raw materials and energy are expected to remain the key factors to the changes in output price levels.

The respondents expect growth in borrowing needs in the next quarter. Most of respondents plan to borrow in hryvnia.

In total, 1,261 enterprises from all regions were interviewed. They were selected to reflect the economy structure with regards to principal types of activity, forms of ownership and size of enterprises as measured by the number of employees.