The situation in business sector is continually improving

In the 1st quarter of 2011, enterprises sold goods and services for 9.4 billion euros (147 billion kroons) at current prices, which is by a fourth 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 gross net sales in total business sector, increased 23%, 47% and 27%, respectively.

Compared to the 1st quarter of 2010, the enterprises’ total costs increased 22%, of which the personnel expenses 8%. The number of persons employed and number of hours worked increased 2% and 4%, respectively. The growth of the productivity indicators (labour, hour and personnel cost productivity) continued in comparison with the same period of the previous year. The hour productivity (total productivity / number of hours worked) of business sector increased 20%, at the same time the average hourly labour costs increased only 4%.

In the 1st quarter of 2011, the total profit of enterprises amounted to 544 million euros (8.5 billion kroons), which was about two times more compared to the 1st quarter of the previous year, but according to the seasonally adjusted data stayed on the level of the 4th quarter of 2010. Regardless of the rapid growth the sector’s total profit was comparable with the profit in 2005. Compared to the 1st quarter of the previous year, the total profit increased the most in trade. The growth in the trade in the 1st quarter of 2011 was influenced by the low reference base in the previous year. The growth was caused by the wholesale trade only; the retail trade was running at a loss. Manufacturing gave a third of the total profit of the business sector. The twofold growth in this activity was mainly caused by increase in exports. The growth in manufacturing was mainly supported by the manufacture of electronic equipment, wood products and fuel oil products.

The decrease in investments which had lasted for nearly two and a half years compared to the same quarter of the previous year, turned to growth in the 4th quarter of 2010, which continued also in the 1st quarter. In the 1st quarter, enterprises invested 487 million euros (7.6 billion kroons), which is a half more than in the 1st quarter of 2010. Investments were mainly made in vehicles and in other equipment and machinery. The major investors were transportation and storage and manufacturing enterprises with about a half of the total investments of enterprises.

Compared to the previous quarter, the growth in net sales accelerated. According to the seasonally adjusted data, the net sales of enterprises increased 7% in the 1st quarter of 2011 compared to the previous quarter. Last year the average growth compared to the previous quarter stayed around 4–6%.

Net sales, personnel expenses and total profit of the business sector, 1st quarter 2002 – 1st quarter 2011
(average of the quarters of 2005 = 100)