Businesses made less profit this year

According to Statistics Estonia, in the 3rd quarter of 2014, the total profit of the business sector was 859 million euros, 7% less than the same time a year ago.

The profit of the business sector was negatively influenced mostly by construction and wholesale activities. The profit of manufacturing, which holds the largest share in the total profit of the business sector, decreased 13%, mainly due to a decrease in the profits of the export-oriented manufacture of electronics, and wood and fuel oil products. The biggest positive contribution to total profit was made by transportation and storage, and accommodation and food service activities.

In the 3rd quarter of 2014, enterprises sold goods and services for 12.6 billion euros, which was 2% less than in the same period a year ago. The turnover of trade enterprises, which have the biggest share in the total turnover of the business sector, decreased 4%, influenced mostly by a decrease in the turnover of wholesale trade. At the same time, the turnover of retail trade continued to grow. The turnover of manufacturing enterprises increased 7%.

Compared to the 3rd quarter of 2013, the total costs of enterprises decreased 1%. Personnel expenses increased 8%. The number of persons employed and the number of hours worked increased 3% and 6%, respectively. The quarterly labour productivity of the business sector on the basis of the value added amounted to an average of 5,600 euros per person employed, remaining on the level of the previous year.

The investment activity of enterprises continues to decrease. In the 3rd quarter of 2014, enterprises invested 586 million euros, which was 16% less than in the same period of the previous year. The largest investments were made mainly in buildings, equipment and machinery. The main investors were energy, manufacturing and transportation and storage enterprises with a half of the total investments of enterprises. Compared to the 3rd quarter of 2013, there was an increase in investments in land and computers. Other investments decreased, with investments in equipment and machinery declining the most.

Diagram: Total profit of the business sector, 1st quarter 2010 – 3rd quarter 2014

Source: Statistics Estonia

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