The industrial enterprises of Ukraine worsened the expectations of business activity prospects in July

In July 2023, Ukrainian enterprises worsened their expectations of prospects for business activity. This is evidenced by the data of the State Statistics Service.

The indicator of business confidence in industry in Ukraine decreased by 1.6 percentage points in July compared to June 2024 – to minus 8.7%. In the processing industry, it decreased by 1.8 percentage points. compared to the previous month – to minus 7.4%.

The business climate indicator in industry decreased by 0.1 pp in July compared to June, and amounted to +0.6%, in the processing industry this indicator decreased compared to the previous month by 0.3 pp, amounting to +0.5%.

According to the State Statistics Service, the components for calculating these indicators have the following seasonally adjusted values ​​of the balance sheets:

• the assessment of the current volume of orders for the production of products (demand) in industry was minus 36%, in the processing industry – minus 37%;
• July expectations regarding the volume of production in the next three months in the industry amounted to +2%, in the processing industry – +5%;
• the assessment of the current volume of stocks of finished products in industry was minus 8%, in the processing industry – minus 9%;
  the estimate in July of the production volume for the previous three months in industry was minus 1%, in the processing industry – minus 3%;
• the estimate of the current volume of export demand in industry was minus 29%, having improved by 1 pp compared to June, in the processing industry – minus 36%, which is 1 p.p. less than in the previous month.

The supply of enterprise orders, as in June, is for an average of four months. The utilization of production capacities in July was 63.4% on average, having increased by 0.1 p.p. compared to the previous month.

Insufficient demand, labor shortages and other factors remain the biggest restraints on industrial production.

As GMK Center reported earlier, Ukraine’s trade turnover in January-June 2024 amounted to $52.7 billion. During the first six months of 2024, the country imported goods worth $33.2 billion, and exported $19.5 billion. At the same time, taxed imports amounted to $28 1 billion, which is 86% of the total volume of imported goods.