BUSINESS CONDITIONS IN: |
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In I quarter 2000 68% of the respondents reduced the production output of these, relatively lower shrinkage in recorded at private construction sub-sector, (-43% balance). The output of construction and assembly works is assessed as "satisfactory" by 20% of the respondents, whereas 77% of them give its "low" assessment. The output is referred to as "high" by neither of the respondents. These assessments can be regarded as far worse than in the previous quarter. Production capacities available at own enterprises were referred to as "sufficient" in relation to the order book by 69% of the respondents, as "more than sufficient)) - by 22%, and as "insufficient" - by 6%, e.g. they fail to complete construction and assembly works by their own.
The least extent of shrinkage in the output was recorded at the enterprises in agricultural construction sub-sector, although these also have quite low balance( -44%). Of the latter, 25% increased own output in I quarter. Overall decline in production output didn't evolve a tangible price movement (growth or reduction of price rates) for individual construction & assembly works. Thus, an increase in prices was reported by only 9% of the enterprises. On the contrary, another 6% reduced the prices, and the overwhelming majority, e.g. 85% kept the price rates intact. Debt on labour payment on completed contracts increased at 40% of the enterprises and fell at 19%. In I quarter more than half of the construction enterprises reduced own employment. The employment grew only at 6% of the enterprises, in IV quarter the distribution of the enterprises by factor limiting business performance looks as follows: the performance at 85% is limited by shortage of funds; 62% - exorbitant tax rates; 66% -thin orders inflow; 23% - exorbitant interest rates on bank loans, 15% - competitive pressure coming from compatriot businesses; 10% - shortage of materials; 3% - shortage of equipment, 3% -shortage of skilled staff, 6% - rough weather conditions; 4% - lack of powers and authorities at the management of the enterprise; 14% - out-of-date equipment; 32% - shortage of circulated assets. 1% of the respondents reported that there were no factors limiting their business performance. Neither of the respondents emphasised on tough pressure by competitors from abroad as a factor hampering their own business. Nearly half of the respondents (as exactly as 47%) believe that market price rates on construction and assembly works established in IV quarter are satisfactory The rates are low as reported by 36% of the respondents, and another 14% of the respondents believe that the rates are too high. According to the estimates derived for the share of companies who used to change prices. in this category of the respondents average price growth made 12%. Bearing in mind that the share of those who did change the price in either of the ways made 15%. and those who grew prices made 9%, this can not be considered as an essential change. New orders inflow in the sector in I quarter became even much thinner (-53%), although at 8% of the enterprises these became heavier. Order books at the enterprises can provide for normal business in the forthcoming 3,5 months. Budgeting of construction & assembly works (contracts) can provide for business during the next 1,5 months. Financial & economic performance at one's construction enterprise in relation to the previous quarter is assessed by 53% of the respondents as down, by 41% - as same, by 5% - as up. In relation to previous quarters, I quarter seems to mark no movements in respect of overall financial & economic performance of construction enterprises: thus, in I quarter 77% of the managers assessed own economic conditions as "bad", 21% referred it to as "satisfactory", and 1% reported on "good" economic performance at own company (this figure had been stable since long). In I quarter 2000 debt on labour payment increased at 38% of the construction enterprises, whereas at 28% of the enterprises it reduced. Nearly 22,3% of payments on completed contracts were made in 1 quarter according to barter schemes the performance indicators by construction purpose look as follows.
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