The business sector’s profit is continually based on domestic consumption

news release no 151

According to Statistics Estonia, in the 3rd 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 3rd quarter of 2012, the total profit of enterprises amounted to 878 million euros, which was 14% more than in the 3rd quarter of the previous year and, according to the seasonally adjusted data, stayed on the same level as in the 2nd quarter of 2012. Like in the first half of the year the biggest contribution to the increase in total profit was made by activities mainly relying on domestic consumption – real estate and construction. The profit of manufacturing, which holds the biggest share in the total profit of the business sector, increased 13% compared to the 3rd quarter of the previous year. The growth was mainly supported by the manufacture of fuel oil and food products.

In the 3rd quarter of 2012, enterprises sold goods and services for 11.8 billion euros at current prices, which is 9% 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 10%, 1% and 8%, respectively. The biggest increase (26%) occurred in the net sales of construction enterprises.

Compared to the 3rd quarter of 2011, the enterprises’ total costs as well as personnel expenses increased 9%. The number of persons employed and the number of hours worked increased 3% and 2%, respectively. The per-hour productivity (total productivity divided by number of hours worked) of business sector increased 9%. At the same time the average hourly labour costs increased 7% compared to the same period of the previous year. Last year the increase in these indicators was 11% and 6%, respectively.

The investment activity of enterprises remains high. In the 3rd quarter of 2012, enterprises invested 607 million euros, which is 12% more than in the 3rd 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 – 3rd quarter 2012 (average of the quarters of 2005 = 100)

Diagram: Net sales, personnel expenses and total profit of the business sector

For further information:

Merike Sinisaar
Leading Statistician
Industry, Construction and Energy Statistics Service
Statistics Estonia
Tel +372 625 9291

More detailed data have been published in the Statistical Database (investments, productivity , enterprises’ income statement ).