The growth in the business sector has slowed down slightly
According to Statistics Estonia, in the 1st quarter of 2012, 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. At the same time, the high comparison basis makes the growth rate slower.
In the 1st quarter of 2012, enterprises sold goods and services for 10.6 billion euros at current prices, which is 12% more than in the same period a year ago. The net sales of wholesale and retail trade, manufacturing and transportation and storage enterprises, which have the biggest share in the gross net sales of the business sector, increased 14%, 3% and 11%, respectively.
According to the seasonally adjusted data, the net sales of enterprises increased by 4% in the 1st quarter of 2012 compared to the previous quarter. In the 1st quarter of 2011 the growth compared to the previous quarter was 7%.
Compared to the 1st quarter of 2011, the enterprises’ total costs increased 12%, including a 13% increase in personnel expenses. The number of persons employed and the number of hours worked increased 5% and 6%, respectively. The share of labour costs in value added is increasing, which has also evened out the increase in productivity indicators. The per-hour productivity (total productivity / number of hours worked) of the business sector increased 8% and the average hourly labour costs increased 6%. A year ago the increase in these indicators was 20% and 4%, respectively.
In the 1st quarter of 2012, the total profit of enterprises amounted to 627 million euros, which was 17% more than in the 1st quarter of the previous year and, according to the seasonally adjusted data, stayed on the same level as in the 4th quarter of 2011. The biggest contribution to the increase in total profit was made by enterprises engaged in construction, real estate and retail trade. The total profit of manufacturing, which held the biggest share in the total profit of the business sector, decreased 12% compared to the same quarter of the previous year. The changes in manufacturing profit were mainly caused by the decreased profit of the manufacture of electronic equipment.
According to the Estonian Institute of Economic Research, the economic sentiment indicator, which reflects the confidence of Estonia’s entrepreneurs and consumers, has also shown a positive trend in the first quarter of the year. At the same time, the confidence has significantly declined compared to the 1st quarter of 2011, when the indicator was on the highest level of recent years.
The investment activity of enterprises remains high. In the 1st quarter of 2012, enterprises invested 506 million euros, which is 1% more than in the 1st quarter of 2011. Investments were mainly made in equipment and machinery. The major investors were energy, manufacturing and trade enterprises with about a half of the total investments of enterprises. Compared to the 1st quarter of 2011, only investments in vehicles and computers decreased.
Net sales, personnel expenses and total profit of the business sector,
1st quarter 2003 – 1st quarter 2012 (average of the quarters of 2005 = 100)
