Respondents' data in respect of production output in II quarter 2000 give all the grounds to expect their further considerable growth (+41%). The balance in question have never been as high as that since the start of the survey.

Sustained growth of production output is expected in machine building (expectation balances in 1 quarter 2000 and IV quarter 1999 being +54% and +30%, respectively), chemical and refinery industry (+59% and +18%), ferrous metallurgy (+58% and +19%), non-ferrous metallurgy (+50% and +38%) and timber industry (+53% and +35%). Expectation of quite a certain boost in construction materials industry is admitted in view of seasonal factors: thus, its expectation balances moved from -28% in IV quarter up to +74% in I quarter 2000.

However, an essential production decline is expected in electric energy production (expectation balance for n quarter makes -64%, against the previous expectation of +56%) and flour-grinding (-48% and -33%, respectively), which can be clear in view of specifics of production schedule in these industries in II quarter, e.g. seasonal factors once and again come in play.

Respondents also expect growth in sales which are to correlate with that in production output, where the balance equals +41%. This indicates on further expectations of growth in customer demand, as well as on the fact that the respondents tend to link their production policies with the available demand rather than perform to accrue the stocks of finished products. Another evidence in this respect is too close correlation between the proportions of the enterprises who tend to increase both output and sales (54% both), and those who tend to shrink both output and sales (13%) in II quarter 2000.

Producer prices on main product groups is expected to grow in II quarter 2000 at 33% of the respondent enterprises. This makes 2 percentage points higher than in the previous quarter. 63% of the respondents expect to keep their prices intact, and another 4% believe it's feasible to reduce prices of own products in II quarter 2000. Of those, who plan to change prices, average expected growth rate of prices is to make 8,2%. That is, given quite essential price growth in I quarter, there's a clear cut indication that the industrial products are going to be more expensive.

Expectations in respect of employment are as gloomy as over the whole observation period (the balance in this quarter makes -15%). There're 9% of industrial enterprises tending to increase own employment figure, although 24% are going to shrink the employment. By size, the largest share of those who plan to reduce employment is found (as before) in large enterprises with above 1000 employees.

By ownership category, the tendency towards employment reduction is the strongest at public enterprises (-16%), whereas at private enterprises is unlikely to change (0%).

Improvement of own financial & economic performance in II quarter 2000 is expected by 29% of the respondent enterprises. 11% expect vice versa tendency. This is much more favourable expectation, than those given for I quarter, indicating, that the enterprises tend to increase own production output, sales and, consequently, improve own financial & economic conditions, the share of those who expect recession in own financial & economic performance being the same and the rest of 19% who expect nothing new in this respect.


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