Statistics Estonia: Business profits up 22 percent in second quarter
According to Statistics Estonia the total profits of the business sector reached €827 million in the second quarter of 2017, 22 percent more than in the same period of the last year.
Compared to the second quarter of 2016, total profits increased in most economic activities. The biggest contribution to the total profits of the business sector was made by transportation and storage as well as and manufacturing enterprises. The growth in the sector’s profits was negatively affected mainly by the real estate and information and communication enterprises.
In the second quarter enterprises sold goods and services for €14 billion, 10 percent more than in the same period of 2016. The turnover of trade enterprises, which make up the biggest share of the total turnover of the business sector, increased by 9 percent mainly due to an increase in the turnover of wholesale trade. This growth was supported also by retail and motor trade. The turnover of manufacturing enterprises increased by 4 percent year on year.
Compared to the same period last year, the total expenditure of enterprises increased by 10 percent. Labor expenses also increased by 10 percent. The number of persons employed increased by 4 percent, and the number of hours worked by 2 percent. Labor productivity of the business sector on the basis of value added amounted to an average of €5,890 per quarter per person employed, i.e. 9 percent more than in the second quarter of 2016.
Companies’ investments have grown again since the beginning of the year. In the second quarter enterprises invested €636 million, which was 27 percent more than in the same period the year before. The investments were made mostly in machinery and equipment, transport equipment, and buildings. The main investors were in the transportation and storage, trade, and manufacturing sectors, accounting for more than a half of the total volume across all enterprises. Compared to the second quarter of 2016, all investments increased, with the biggest growth registered in investments in transport equipment.
Editor: Dario Cavegn
Source: Statistics Estonia