Companies Survey, 4th quarter, 2000

18/04/2001
All Press Releases In Subject:
The Economy and Economic Activity

Companies Survey, 4th quarter, 2000

Overview:

Reports from companies for the fourth quarter of 2000 indicate that activity declined considerably in most of the principal industries, against the background of the security-related incidents which occurred during the quarter. The same picture emerges from the seasonally adjusted data, but they indicate that total trading activity was relatively stable. These findings are all the more notable in view of the rises recorded in most industries in the last two quarters. In the manufacturing industries the decline resulted mainly from a drop in domestic sales together with a slowdown in the increase in exports. High-tech companies were affected less than traditional ones. Hotels’ exposure to the security-related events was reflected in the period reviewed mainly in the decline in tourism from abroad. Overland and air passenger transport were also affected by these events, while communications and freight companies generally reported a stable level of activity. Activity in the construction industry, which had shown signs of recovery in the previous quarter, declined again, both in housing and infrastructure. Supply constraints replaced demand constraints as the major obstacle to the expansion of activity, due to the shortage of labor which resulted from the unrest in the territories. Average inflation expectations continued falling, to 2.4 percent for the next twelve months, and to 1.4 percent for the next quarter, in annual terms

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