The business sector’s profit in the 2nd quarter was mainly based on domestic consumption
According to Statistics Estonia, in the 2nd 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.
In the 2nd quarter of 2012, the total profit of enterprises amounted to 833 million euros, which was 11% more than in the 2nd quarter of the previous year and, according to the seasonally adjusted data, increased by 8% compared to the 1st quarter of 2012. The biggest contribution to the increase in total profit was made by activities mainly relying on domestic consumption – construction, retail trade and energy. The profit of manufacturing, which holds the biggest share in the total profit of the business sector, decreased 10% compared to the same quarter of the previous year. The changes in manufacturing profit were mainly caused by the decreased export of electronic equipment manufacturers.
In the 2nd quarter of 2012, enterprises sold goods and services for 11.7 billion euros at current prices, which is 10% 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 13%, 2% and 8%, respectively. The biggest increase (28%) occurred in the net sales of construction enterprises.
Compared to the 2nd quarter of 2011, the enterprises’ total costs increased 10%, including a 12% increase in personnel expenses. The number of persons employed and the number of hours worked increased 4% and 6%, respectively. The increase in productivity indicators continued. The per-hour productivity (total productivity / number of hours worked) as well as the average hourly labour costs of the business sector increased 6%, compared to the same period of the previous year when the increase in these indicators was 22% and 6%, respectively.
According to the Estonian Institute of Economic Research, the economic sentiment indicator, which reflects the confidence of Estonia’s entrepreneurs and consumers, shows that the confidence has stayed on the same level as at the beginning of this year. At the same time, the confidence has declined significantly compared to the first half of 2011, when the indicator was on the highest level of recent years.
The investment activity of enterprises remains high. In the 2nd quarter of 2012, enterprises invested 645 million euros, which is 10% more than in the 2nd quarter of 2011. Investments were mainly made in equipment and machinery and in the construction and alteration of buildings and structures. The major investors were energy, manufacturing and transportation and storage enterprises with about a half of the total investments of enterprises.
Net sales, personnel expenses and total profit of the business sector, 1st quarter 2003 – 2nd quarter 2012 (average of the quarters of 2005 = 100)
