Confederation of Lithuanian Industrialists: Industry expectations have been improving for several months in a row

Businessin 2024 May 7 10:11 a.m

StagesSource: Etaplius.LT

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The Lithuanian Industry Expectations Index is presented by the Confederation of Lithuanian Industrialists (LPK) in April. increased slightly and reached 49.1. In March of this year this index reached 48.9.

As LPK explains, if the 50 mark is exceeded, it will indicate the growth trends of the industry.

According to LPK, the improving assessment of the business environment of industrial companies has been observed since the beginning of this year. According to the confederation, companies are already predicting an increase in the number of employees, and are positively assessing demand.

According to LPK president Vidmantas Janulevičius, the situation in the industrial sector is stabilizing little by little.

“A certain improvement in the situation is due to the fall in energy prices, which has a positive effect on the chemical industry, and in addition, the situation in the wood and furniture sectors is improving. Decreasing inventories in the euro area encourage manufacturers to increase production of final products, which generates more orders for Lithuanian manufacturers and improves export expectations. In addition, we expect an additional breath of fresh air due to the eventual launch of RRF measures, which should give impetus to new investments”, explains V. Janulevičius.

“Eventually, if the European Central Bank takes the long-awaited decision in June and interest rates really start to fall, it will be an additional stimulus to move the economy,” he added.

According to LPK, there is growing confidence that exports will grow in the next three months.

However, currently around four out of ten industrial companies are not meeting their export demand, which is a major concern for companies. Concerns about staffing are also starting to grow.

Production capacity utilization in April. reached 70.2 percent. Lower-than-average capacity utilization in industrial enterprises in April. fixed in the production of other non-metallic mineral products (42.1%), furniture production (59.4%), computer, electronic and optical products production (60.0%), chemicals and chemical products production (63.3%). ) and rubber and plastic products production (67.1%) sectors.

Better-than-average industry-wide expectations for April. were fixed in the sectors of computer, electronic and optical products production, metal products, rubber and plastic products production, other non-metallic mineral products production, food products and textile products production sectors.

The highest recorded industrial expectations index was 54.5 (May 2021) and the lowest ever recorded was 38.9 (April 2020).

The index has been compiled since 2015.

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