The situation in business sector is continually improving
According to Statistics Estonia, in the 2nd quarter of 2010, the net sales, costs and total profit of the business sector increased compared to the previous quarter as well as to the same quarter of the previous year.
The increase of net sales of business sector continued for the second quarter in succession. According to the seasonally adjusted data, the net sales of enterprises increased 5% in the 2nd quarter of 2010 compared to the 1st quarter. In the 1st quarter this year compared to the previous quarter the increase was 4%.
In the 2nd quarter of 2010, enterprises sold goods and services for 138 billion kroons (8.9 billion eoros) at current prices, which is 7% more than in the same period a year ago. The net sales increased in most economic activities. The wholesale and retail trade enterprises, which have the biggest share in gross net sales in total business sector, have managed to increase the net sales for the first time after the 3rd quarter of 2008 as compared to the previous year. The growth was mainly influenced by the wholesale activity. The net sales of construction enterprises decreased the most.
Compared to the 2nd quarter of 2009, the enterprises’ total costs increased 6%. The personnel expenses decreased 8% as well as the number of persons employed and number of hours worked. It has continually increased the growth of the productivity indicators (labour, hour and personnel cost productivity). The hour productivity (total productivity/number of hours worked) of business sector increased 11%, at the same time the average hourly labour costs stayed on the level of the 2nd quarter of the previous year.
In the 2nd quarter 2010, the total profit of enterprises amounted to 7.4 billion kroons (475 million euros), which was 38% bigger compared to the 2nd quarter of the previous year and more than half bigger than in the 1st quarter this year. Although compared to the 2nd quarter of the previous year, the total profit increased the most in repair of computers and personal and household goods and arts, entertainment and recreation activities, the growth of total profit of business sector was mainly influenced by manufacturing. The growth in manufacturing was mainly supported by the manufacture of metal products, shale oil and motor vehicles. Agriculture and education activities were running at a loss.
The investment activeness of enterprises was continually low. In the 2nd quarter, enterprises invested 5.3 billion kroons (337 million euros), which is a third less than in the 2nd quarter of 2009. Investments were mainly made in other equipment and machinery and in the construction and alteration of buildings. The major investors were manufacturing, transportation and storage and energy enterprises with about a half of the total investments of enterprises. Compared to the 2nd quarter of the previous year, investments increased only in other equipment and machinery.
Net sales, personnel expenses and total profit of the business sector,
1st quarter 2002 – 2nd quarter 2010 (average of the quarters of 2005 = 100)
