"The slowdown signs surfaced in September. They became gradually stronger in October and November, although the industry remained in the growth area. However, in December, the activity plummeted. The output volume index fell from 55 points to 42 points and the industry dropped by 8 points, below the 50-point threshold that separates expansion from contraction. The fall was dramatic as it contained 90 percent of all indicators measured by the Barometer. Let's take a look at the most important ones. The new orders indicator decreased from 53 in November to 44 in December. Stocks decreased less, from 45 to 43, as they were relatively depleted. Orders that hadn't been carried out were at 46 points and fell to 41, due to a significant reduction in the orders' portfolio," reads the document.
According to the cited source, the number of employees indicator dropped from 51 to 45, a sign that companies made redundancies, laying off staff on temporary contract.
According to the Barometer, the pattern suggests that the industry has an imperfect control over orders and is exposed to repetitive seasonal variations as well as to circumstantial off-seasonal variations. The length variations of contractual cycles and the short and medium-term influences of economic and fiscal policies also intervene.
The data were collected through direct interviews with companies' managers January 17-19, 2017. (source: actmedia.eu)