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The latest RSPP survey shows that the composite Business Environment Index fell further in June, declining by 1.3 points to 43.8 points. The drop was driven by weaker financial indicators and a sharp fall in the personal assessment index, alongside continued declines in the B2G and logistics components. On a more positive note, the manufactured products index and the B2B index both moved upward.
The manufactured products index rose by 1.3 points to 46.5 points. One in ten companies reported lower procurement prices, up from the previous month, lifting that sub-index to 29.8 points. The selling prices index, however, eased by 1.7 points to 54 points.
Demand indicators improved, with both the industry demand index and the index for demand for companies' own products rising by 2.6 points each to 43 points and 44.8 points, respectively. The improvement came mainly from fewer negative responses, as more companies chose neutral answers.
The B2B index edged up 0.5 points to 47.4 points. New orders remained in positive territory for the third month running, reaching 51.8 points. Order fulfillment times moved above the 50-point mark to 52 points, as 9% of companies shortened lead times while only 7% reported delays. Most companies – 84% – saw no change.
The indicator for overdue obligations improved by 1.6 points to 48.3 points. While 10% of companies reduced their outstanding obligations, 14% saw an increase, and 76% reported no change. However, the counterparty payment discipline index fell by 2.5 points to 37.5 points, signaling ongoing difficulties with supplier payments.
The logistics index continued to decline, losing 0.4 points to reach 47.8 points. While 85% of companies rated the logistics situation as neutral, 12% reported deterioration and only 3% saw improvement. Delivery times worsened significantly, with the corresponding indicator dropping 3.5 points to 44.8 points.
The B2G index fell further to 46.7 points. Relations with banks and financial institutions saw the steepest decline, falling 3.3 points to 45 points – the lowest level in a year and a half. Although 81% of companies reported no change, the share citing deterioration nearly tripled to 14%. Indicators for relations with government authorities and foreign partners remained unchanged at 49.8 points and 45.3 points, respectively.
The financial markets index dropped to 40.8 points, its lowest level in 18 months, declining 2.6 points from May. While 70% of companies reported no change in their financial position, 24% saw deterioration and only 6% improved, compared to nearly 11% a month earlier. The currency market indicator fell 3.7 points to 40.3 points, as the share of companies reporting worsening currency conditions rose from 12% to 19%. Stock market assessments also weakened, falling 3.8 points to 42.5 points.
The personal assessment index, which had been rising for two months, reversed sharply in June, dropping 5.2 points. The share of respondents giving negative personal evaluations rose from 27% to 35%, indicating growing concern among business leaders about the overall economic climate.
Investment and Social Activity Index
In June, 77% of surveyed companies reported running investment programs, up from two-thirds in May. Among these, two-thirds kept their projects on track and within budget. Just over a quarter (26.3%) fell behind schedule, while a similar share (23.7%) reduced their investment budgets. Only 3.9% of companies managed to move ahead of schedule and increase spending – down from 10% in May.
Hiring activity rebounded to 71%, returning to typical levels after a dip in May. Layoffs fell sharply to 13%, down 7 percentage points from the previous month. One-fifth of companies continued to reduce working hours to cut costs, with that share remaining largely unchanged.
Social programs for employees remained widespread, operating at 89% of companies, while programs supporting other groups were in place at 60% of firms. The most common employee benefits were paid vouchers for sanatorium treatment and children's holidays (70.5%), extra payments beyond legal requirements (63.6%), voluntary health insurance (63.6%), transport assistance (62.5%), meal subsidies (60.2%), housing programs (43.2%), and supplemental pension insurance (18.2%). Additional initiatives cited by some companies included support for young staff, corporate sports and cultural events, accident insurance, gym memberships, family support programs, gifts for employees' children, assistance for veterans and retirees, vocational training, and extra vacation days.
Two-thirds of companies kept their social program budgets unchanged, while 20.2% increased spending and 13.5% cut it – a notable rise from 6.3% in May. Additional measures to ease labor market pressures were implemented by 70% of respondents, including advanced training (53%), internships (46%), and temporary employment programs (25%).