Reports by industrialists show that in the second quarter of 2005 there was acceleration in the rate of industrial output and in the extent of sales to the domestic market.
This was accompanied by a continued slow expansion of the number of workers in industry.
As against this, a slowdown was registered in the rate of export shipments, accompanied by a slight slowdown in the rate of investments in fixed assets.
Companies with manufacturing activities abroad report a slowdown in the rate of growth of their overseas output during the second quarter of 2005, with a significant slowdown in their investments, accompanied by renewed rapid absorption of workers in their overseas plants[1]. This is shown in an initial analysis of the survey of expectations in industry carried out at the end of June and beginning of July 2005, covering around 160 industrial companies.
The industrialists anticipate that in the third quarter of 2005 there will be continued growth in output, in sales to the domestic market and in the number of employees, at a rate similar to that reported in the second quarter of the year.
At the same time acceleration is expected in the rate of expansion of export shipments and in investments in fixed industrial assets.
Companies with manufacturing activities abroad anticipate that the coming months will see acceleration in the rate of expansion of output and in the extent of investments in their overseas plants, alongside a significant slowdown in the rate of absorption of workers.
The industrialists report an accelerated rate of growth of output during the months April ?June 2005, at a strength which has not been reported for about a year: 52% of the industrialists expanded their output, 13% reported a marked rise, and 22% reduced their output (this is against 43% who registered an increase and 31% who registered a drop in the previous survey).
A rise in output was registered in all branches of industry, with an especially sharp rise in output in the food, chemicals and electronics branches.
Parallel to this, in the second quarter of the year there was a significant rise in utilization of industrial equipment: 40% of industrialists registered a rise in utilization and around 20% reported a drop (as against 34% and 25% respectively in the previous survey); this alongside a slight slowdown in the rate of growth of stocks, both in stocks of finished goods and in stocks of raw materials.
For the third quarter of 2005 the industrialists anticipate a continuation of the trend of expanded industrial output: 48% of the industrialists anticipate a rise, and 15% anticipate a drop in output. A rise in output is expected in most industrial branches, with a particularly sharp rise expected in the branches of textiles, food, chemicals and electronics.
