NBR expects unemployment rise in industry into 2010; factory output to grow

The unemployment rate in the industry sector will continue to rise in November, as well as in construction sector. However, private companies expect the factory output to grow and stocks to run low, according to the latest business survey published by the National Bank of Romania.

“The upward trend in factory output will persist in November as the balance of positive answers in the NBR survey rose to 17%. Construction activity will contract in terms of volume (-42%), largely due to the worsening of weather conditions”, NBR business survey found.

Private companies in industry expect the stocks to exhaust in November, unlike constructions where 53% of the companies say the sluggish demand curbs their activity, with 48% of the respondents blaming the economic downturn.

“Private companies in industry point to a possible continuation of the downward trend of end products stock, the balance of answers standing falling again in the negative territory. In construction sector, stock replenishing process will continue in November”, NBR said.

Under these circumstances, companies operating in the industry and construction sector expect unemployment to rise in November, and the only sector seeing a decline being tech and radio-TV sector.

“In industry, the downward trend will have a leave a major imprint on unemployment rates in metallurgy, metal constructions, and metal products, but also in mining, quarrying, oil and gas extraction, construction materials, energy production and transportation and printing”, NBR said.

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