Page 24 - UKRRptAug23

4.3 Fixed investment
4.4 Corp profit
Needless to say, investment will not be a material growth driver this year.
The private sector still has abundant underutilised capacity, while government is prioritising military expenditures over infrastructure projects.
Business expectations worsened in July across all sectors. The business activity expectation index, calculated by the National Bank (NBU) in July, fell by two points to 48.8 on a scale from zero to 100 after three months of being on the positive side of the scale (from 50.5 to 51.5 points). According to the central bank, the main reason for the lower index was a pricing revision for enterprises in the electricity market, the return to pre-war taxation of fuel, the cessation of the grain corridor, increased shelling of infrastructure facilities, as well as a significant shortage of qualified personnel, all adversely affected respondents' expectations. It is noted that industrial enterprises, after four months of optimistic estimates, expect a deterioration in their economic results: the sectoral index in July was 48.2 against 51.0 in June. Respondents forecast lower volumes of new export orders and worsened estimates of unfinished production volumes, stocks of raw materials, and materials. At the same time, a slight increase in the volume of manufactured products is expected, and the volume of new orders is forecast at the previous month's level.
Business activity results are positive for the third consecutive month.
After adapting to the difficult conditions of a full-scale war, Ukrainian business has given positive evaluations of their activities' results for the third month in a row, according the Business Activity Indications Index (BAEI) from the National Bank. "Slowing growth of raw materials and energy costs, gradual adjustment
24 UKRAINE Country Report August 2023 www.intellinews.com