Industry in recession
Industrial companies are cutting production and slashing employment. The crisis is already a reality, although the statistics do not yet show it.
According to the Central Statistical Office (CSO), in August industrial production rose 10.9 percent over the year and by 0.7 percent compared to July the previous month. However, while the data still looks good, the reality is that industrial companies have already felt the crisis. They have been hit hard by high gas prices. Until the middle of this year, industrial companies were still operating at full capacity. Many companies have so far been operating on gas and power purchase contracts that were made in previous years. Now prices are much higher, and they could still rise dramatically next year.
In addition, the number of orders is falling. Companies are unable to control the cost of doing business because they don’t know what gas or electricity prices will be. They are finding it increasingly difficult to pass on rising prices to customers. Many of them are halting investments. Companies are also cutting production and slashing employment. All this could result in the bankruptcy of many companies. In the statistics, the weak situation in the industry may already be visible at the end of the year.