Companies Survey, 3rd quarter, 2001

28/10/2001
All Press Releases In Subject:
The Economy and Economic Activity

Companies Survey, 3rd quarter, 2001

Overview:

Reports from companies for the third quarter of 2001 indicate that the decline in activity in most of the principal industries continued. Manufacturing, trade, construction, transport and communications, hotels, and business services were all affected. The decline in these industries (except for that in construction), which started with the outbreak of the intifada a year ago, was even more pronounced than in the previous recession, which ended in 1999, and was reflected in all the main aspects of activity: in manufacturing, domestic sales and exports both fell; in the hotel industry, bed-nights fell steeply; the construction of both buildings and infrastructure went down; activity in both overland and sea transport decreased, although air transport and communications rose slightly. Reports in most of the principal industries of constraints on increasing output, mainly on the demand side—domestic and from abroad—continued, as did the fall in orders for the next quarter. Average inflation expectations for the next twelve months rose markedly to 3.4 percent a year. The share of companies expecting inflation to exceed the upper limit of the government's target range rose too, to 50 percent, from 22 percent in the previous quarter.

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