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Main cause of stagnation is the insufficient rate of internal and external orders.
Industrial production in Romania hasn’t managed to recover in July after a sharp fall in June, shows the monthly industrial barometer compiled by IRSOP polling agency and Faculty of Management of SNSPA University, published on August 29.
Poor results and difficult context also affect managers' e
Expectations for the future.Many companies closed the gates in July for a full month of vacation, but the main cause of stagnation is the insufficient rate of internal and external orders.
According to barometer conclusions, production growth stopped at 52 points, close to 50, which means zero growth.
Global indicator in reference to the trust of managers has dropped to 52 points, compared to 70 in January. The decrease over the last six months has been linear and continuous.
The likelihood that managers' confidence will fall into negative territory (below 50 points) in the coming months has increased - warn the authors of the study.
Starting with 2014, IRSOP and SNSPA ask each month a sample of managers whether production, orders, stocks, employment and other parameters in their companies have increased or decreased compared to the previous month.
An index based on the net ratio of responses signals expansion if it passes 50 points and contraction if it drops below 50.
Source:RRA.Translated by Miruna Matei
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