Business Sentiment in Ukraine Deteriorates, Expectations Index Drops to 48.3

In August 2026, business sentiment in Ukraine worsened: the Business Activity Expectations Index (BAEI) fell to 48.3 points from 50.1 in July. Industrial and trade enterprises provided the most cautious assessments, while the construction sector remained the only one with an index above 50 points, at 50.7. Builders expect an increase in workloads and new orders, despite a slowdown in the growth of subcontracting services. In contrast, the industrial sector downgraded its assessments: the index dropped to 47.3 points, citing losses due to destruction and a shortage of personnel. Trade enterprises also lowered their assessments to 47.5 points, anticipating a decline in turnover due to disrupted logistics and high fuel prices. The services sector showed a slight increase to 49.5 points, supported by stable domestic demand. In most sectors, an increase in raw material and service prices is expected, along with staff reductions, particularly in industry. In construction, a slowdown in price growth is anticipated, while the labor shortage persists.

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