A recent survey by the Industrial Union has revealed a significant decline in industrial activity with few positive expectations for the remainder of 2024. The report indicated that most indicators pointed towards a contraction in activity, including production, employment, delivery times, and input stocks.
The survey found that 53% of companies experienced drops in production, 60% saw a decrease in sales, 37% reported a decline in exports, and 24% faced a reduction in employment. The impact was felt across all business segments, particularly in the SME network. While some percentages were slightly lower than in previous surveys due to seasonal factors, the employment data showed an increase in staff reductions, reaching its highest value since 2021.
Companies facing difficulties in meeting their financial obligations increased significantly, with 12% reporting problems in paying salaries, suppliers, financial commitments, utility bills, and taxes – the highest value ever recorded. Concerns about increased costs were prevalent among respondents as well as decreased demand from other sectors and household demand.
Despite these challenging economic conditions, there was a slight improvement in expectations for the future as 62.1% of companies expect an improvement in their economic situation within the next year. However, companies also expressed concerns about how their current economic situation compares to one year ago with perceptions of their own company activity being worse than before.
To weather this economic downturn successfully, it is crucial for businesses to identify areas of concern such as rising costs and declining demand and take proactive measures to address them. Staying informed and taking action are key steps towards resilience during challenging times.
