From April to mid-May, economic activity grew at a modest pace which somewhat improved compared with the previous period as a whole. In almost all districts, there was some growth and a moderate increase in activity was observed in some of them. Production reports were generally positive but in some districts, there were signs of slower activity and more uncertain prospects among contacts. Both in housing and in real estate, there was a general increase but there were significant differences in both sectors in attitudes in different areas. Consumer spending reports were generally positive but moderate. Tourist activity was stronger, especially in the South-East. However, car sales were lower, according to reporting districts. The demand for loans was mixed but pointed to growth. Overall, agricultural conditions remained weak but some areas reported some improvements. Prospects for the coming months were persistently positive but modest, with only minor differences between the countries that reported.
Employment and wages
Employment continued to increase throughout the country with most districts reporting modest or moderate employment growth and others showing a slight increase, which was estimated to be similar to the previous reporting period. There was a strong demand for employment in retail trade, business services, technical, manufacturing, and construction work, as well as from recruitment agencies in general. However, stronger employment growth continued to be constrained by tough labor markets, with districts citing a shortage of both highly skilled and low-skilled workers. According to reports of several districts, competition for workers to a certain extent puts pressure on the level of wages in a wide range of occupations and leads to increased benefits in order to attract more workers and improve the retention of existing workers. However, overall wage pressure remained relatively low due to low unemployment. Most districts reported modest or moderate wage growth.
Prices
Since the last report, prices generally continued to grow at a modest pace in most areas. Although in some areas, there was a faster increase in prices for input resources compared to final sales prices. Firms generally reported an increase in input costs in the range from moderate to moderate. Contacts in several districts reported a rise in freight prices. Producers' input pricing reports were mixed with some counties referring to lower prices for steel and other metals, while contacts with others noted that raw material prices remained high. Prices for building materials, including sawnwood, have also declined in a number of areas. As a rule, retailers report that sales prices hardly increase.
