The profit of the business sector decreased in Q2

According to Statistics Estonia, in the 2nd quarter of 2016, the total profit of the business sector was 671 million euros, which was 6% less than in the same period a year ago.

Compared to the 2nd quarter of 2015, total profit decreased in almost all economic activities. The biggest contribution to the growth in total profit was made by trade and 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 2nd quarter of 2016, enterprises sold goods and services for 12.6 billion euros, which was 1% more than in the same period a year ago. The turnover of trade enterprises, having the biggest share in the total turnover of the business sector, increased 2%, influenced mostly by a decrease in the turnover of wholesale trade. At the same time, the turnover of retail and motor trade continued to grow. The turnover of manufacturing enterprises increased 3%.

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 4%. The labour productivity of the business sector on the basis of value added amounted to an average of 5,400 euros per person employed per quarter, remaining on the level of the previous year.

The investment activity of enterprises continues to be at a low level. In the 2nd quarter of 2016, enterprises invested 496 million euros, which was 5% less than in the same period the year before. The investments were made mostly in machinery and equipment and buildings. The main investors were manufacturing, trade, transportation and storage enterprises, who made about a half of the total investments of all enterprises. Compared to the 2nd quarter of 2015, investments in transport equipment and computer systems increased, while other investments fell.

Diagram: Total profit of the business sector, 1st quarter 2010 – 2nd quarter 2016

Source: Statistics Estonia

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