DREM releases, for the first time, monthly confidence indicators for the sectors of Manufacturing Industry, Construction, Trade and Services
The Regional Statistics Directorate of Madeira releases today, for the first time, a set of information regarding the opinions (assessments/expectations) of companies headquartered in the Region about the evolution of economic activity in general, and their own company in particular. Through the combination of entrepreneurs' opinions, it becomes possible to assess not only the current situation of the sector but also the outlook for the future.
This set of information is based on the Qualitative Business Surveys (QBS), which are considered indispensable elements for appreciating and grasping the non-quantifiable aspects of the economy and for minimizing the impacts of obtaining statistical data ex-post. Additionally, these surveys are important for detecting turning points in the economic cycle and as a complement to official statistics, which are only available with some time lag.
In the Region, approximately 1,000 companies are responding monthly to the QBS across the sectors of the Manufacturing Industry, Construction, Trade and Services.
There are several indicators included in this new release, which will be published monthly, with a particular emphasis on confidence indicators. It is also expected that by the end of the year, similar to what happens at the national level, the Economic Climate Indicator will be made available.
In March 2024, confidence indicators increased in the Manufacturing Industry, Trade, and Services, and decreased in Construction and Public Works
The confidence indicator for the Manufacturing Industry increased in February and March, after decreasing in January. The evolution of the indicator was due to the positive contribution of all components: opinions on the evolution of overall order books, production prospects, and assessments regarding finished product stocks. The balance of expectations regarding selling prices decreased in February and March, after increasing in the previous 5 months.
In Construction and Public Works, the indicator decreased in February and March, after increasing in January. The evolution in the last month reflected the negative contribution of employment prospects since the balance of assessments regarding the order books stabilized. The balance of prospects for prices charged by the company in the next three months decreased in March, after increasing between November and February.
In Trade, the confidence indicator increased slightly in March, after decreasing in January and February. The evolution of the indicator in March resulted from the positive contribution of assessments regarding stock volume and business activity prospects, while opinions on sales volume contributed negatively. The balance of expectations for future price developments decreased slightly in March, after increasing in January and February, more significantly in the former case.
In Services, the indicator increased in March, continuing the upward trend initiated in January. The evolution of the indicator resulted from the positive contribution of all components: prospects regarding demand evolution, assessments of business activity, and opinions on the evolution of the order books, more significantly in the first case. The balance relating to expectations for service pricing decreased in February and March, after increasing in the previous four months, more intensely in January.
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