The profit of the business sector decreased in Q2

According to Statistics Estonia, in the 2nd quarter of 2015, the total profit of the business sector was 724 million euros, which was 15% less than in the same period a year ago.

Compared to the 2nd quarter of 2014, total profit decreased in almost all economic activities. The growth in the profit of the business sector was negatively influenced mostly by manufacturing, information and communication and agricultural enterprises. The profit of manufacturing, which holds the largest share in the total profit of the business sector, decreased 16%, mainly due to the decrease in profits in the export-oriented manufacture of metal products and wood.

In the 2nd quarter of 2015, enterprises sold goods and services for 12.5 billion euros, which was 3% 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 1%.

Compared to the 2nd quarter of 2014, the total costs of enterprises decreased 2%, while personnel expenses increased 6%. The number of persons employed as well as the number of hours worked increased 2%. The labour productivity of the business sector on the basis of value added amounted to an average of 5,500 euros per person employed per quarter, i.e. 3% lower than in the 2nd quarter of 2014.

The investment activity of enterprises continues to be at a low level. In the 2nd quarter of 2015, enterprises invested 520 million euros, which was 3% less than in the same period the year before. The decrease in investments compared to the corresponding quarter of the previous year continued for the seventh quarter in a row. The largest investments were made mainly in equipment and machinery and buildings. The main investors were energy, manufacturing, trade and agricultural enterprises, with more than a half of the total investments of enterprises. Compared to the 2nd quarter of 2014, only the investments in the acquisition of buildings and in equipment and machinery increased. Other investments decreased, with the biggest decrease registered in investments in vehicles.Diagram: Total profit of the business sector, 1st quarter 2010 – 2nd quarter 2015

Source: Statistics Estonia

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