The profit of the business sector decreased in 1Q

According to Statistics Estonia, in the 1st quarter of 2016, the total profit of the business sector was 521 million euros, which was 12% less than in the same period a year ago.

Compared to the 1st quarter of 2015, total profit decreased in almost all economic activities. The biggest contribution to the growth in total profit was made by information and communication enterprises. The growth in the profit of the business sector was negatively influenced mostly by manufacturing and transportation and storage enterprises.

In the 1st quarter of 2016, enterprises sold goods and services for 11.7 billion euros, which was 2% more 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, increased 7%, influenced mostly by an increase in the turnover of wholesale trade. The growth was supported also by retail and motor trade. The turnover of manufacturing enterprises stayed on the level of the previous year.

Compared to the same period a year ago, the total costs of enterprises increased 2%, which includes a 6% increase in personnel expenses. The number of persons employed as well as the number of hours worked increased 3%. The labour productivity of the business sector on the basis of value added amounted to an average of 4,900 euros per person employed per quarter, i.e. 2% more than in the 1st quarter of 2015.

The investment activity of enterprises continues to be at a low level. In the 1st quarter of 2016, enterprises invested 443 million euros, which was 5% less than in the same period the year before. The investments were made mostly in buildings, and machinery and equipment. The main investors were manufacturing, trade, energy and transportation enterprises, who made more than a half of the total investments of enterprises. Compared to the 1st quarter of 2015, investments in transport equipment and computer systems increased. Other investments fell, with the biggest decrease registered in investments in land.Diagram: Total profit of the business sector, 1st quarter 2010 – 1st quarter 2016

Source: Statistics Estonia

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