Economic situation deteriorating further

The economic situation at the end of September was worse than at the end of August. Indicators showed further deterioration across the board. The heart of the scatter in the Business Cycle Tracer is located in the recession stage. Eleven of the fifteen indicators are currently below the level of their long-term average.

The volume of the gross domestic product (GDP) was 1.6 percent higher in the second quarter of 2011 than in the same quarter one year previously. Growth was far less substantial than in the first quarter (2.8 percent). Taking calendar and seasonal effects into account, the economy grew by 0.2 percent in the second quarter compared to the preceding quarter.

The downward trend in consumer confidence continued in September. On the other hand, the mood among manufacturers improved. Providers of business services were slightly less optimistic than in August.

Manufacturing output was 3 percent higher in July than twelve months previously. The volume of goods exports increased by more than 5 percent. The volume of private sector investments in tangible fixed assets grew by 1 percent. Household consumption increased by a modest 0.3 percent relative to July 2010.

The capital market interest rate dropped by 0.5 percentage points to 2.7 percent in August. The inflation rate remained unchanged at 2.6 percent. Selling prices in manufacturing industry were 10 percent higher than in August 2010.

Seasonally adjusted unemployment increased by 8 thousand in August. August was the second month in a row, in which unemployment increased. In the second quarter there were slightly more jobs of employees than in the first quarter. The number of job vacancies also increased somewhat, so did the number of hours worked in temp jobs.

Gross domestic product (GDP)

More figures can be found in dossier Business cycle.