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44% of surveyed companies stated that the number of employees increased in 3Q23 - BAG Index

BAG

BAG Index Published A Report on the Business Climate Index. According to the document, in Q3 of 2023, the business climate indicator was positive for all sectors. Compared to Q2 of 2023, in Q3 of 2023, the indicator improved in the trade and manufacturing sectors but worsened in the construction and service sectors.

In Q3 of 2023, compared to Q2 of 2023, the present business situation indicator improved in the trade (by 14.4 points) and manufacturing (by 11.8 points) sectors and worsened in the construction (by -27.3 points) and service (by -4.5 points) sectors. Among the sectors, the most
positive assessment with respect to the present business situation was recorded in the trade sector, which could be attributed to increased sales (in the trade sector, 55.3% of the companies indicated an increase in sales in Q3 of 2023).

In Q3 of 2023, the business expectations indicator was positive for all sectors. The most positive expectations were recorded in the construction sector. It is worth noting that, compared to Q2 of 2023, expectations worsened in all sectors. The highest decline was reported in the construction (-9.1 points) and trade (-9.0) sectors, while for manufacturing (-3.6) and service (-2.7) sectors the drop was relatively lower.

Since Q1 of 2021, the business climate indicator has been consistently positive in the trade, manufacturing, and service sectors. The positive assessment of the business climate reflects both the positive assessment of the present situation and optimistic expectations for the following
quarter.

The business climate indicator has been improving in trade and service sectors since Q1 of 2021, compared to the corresponding periods of the previous year. The trade sector sustained a tendency of improvement in Q3 of 2023, however, in the service sector a decline was reported. Meanwhile, since the worsening of business climate in Q2 and Q4 of 2022 in the manufacturing sector, it continued to improve since Q1 of 2023.

In the construction sector, the business climate indicator was negative in Q1 and Q2 of 2021, however, it has been positive since Q3 of 2021 and gradually improving, compared to the corresponding periods of the previous year. Until Q2 of 2022, this improvement has been mainly due to the optimistic outlook under the business expectations element, however, since Q2 of 2022, the optimistic assessment of the present situation also became a determining factor.

"44% of surveyed companies stated that the number of employees increased in Q3 of 2023. At the same time, 51% expect the number of employees to increase in Q4 of 2023. Across the sectors covered, the situation regarding employment in Q3 of 2023 is most positively assessed in the trade sector. As for the expectations for Q4 of 2023 is most positively assessed in construction sector. Meanwhile, the situation in Q3 of 2023 is most negatively assessed in the construction sector, as 9% of surveyed companies stated that the number of employees decreased in Q3 2023", - the document reads.

The Business Association of Georgia (BAG) Index is a joint product of the Business Association of Georgia, PMC Research Center and the ifo Institute for Economic Research. The BAG Index summarizes the BAG Business Climate, BAG Employment Barometer and BAG Investment Environment, which are calculated according to the assessments of the top managers of BAG member businesses and companies in their corporate group. PMC Research Center publishes the BAG Index on a quarterly basis.

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