Business sector profits down 12% in second quarter of 2018

Construction on Tallinn's Reidi St. Source: Siim Lõvi/ERR

According to Statistics Estonia, in the second quarter of 2018 the total profit of the business sector was €726 million, which is 12% less than in the same period the year before.

Compared to the second quarter of 2017, the total profit decreased in most economic activities. Trade, agriculture, forestry and fishing, and information and communication enterprises contributed the most to the total profit of the business sector. The growth in the sector's profit was negatively affected mainly by enterprises specialising in administrative and support service activities and transportation and storage enterprises.

Enterprises sold goods and services for €15.3 billion in the second quarter, which is 10% more than in the same period last year. The biggest year-on-year increase occurred in the turnover of agriculture, forestry and fishing enterprises. The turnover of trade and manufacturing enterprises, which have the biggest share in the total turnover of the business sector, increased by 10% and 6% respectively compared to the second quarter of 2017.

Compared to last year, the total expenditure of enterprises in the second quarter increased by 11%, including a 7% increase in labour costs. The number of persons employed and the number of hours worked stayed on the level of the previous year. Labour productivity of the business sector on the basis of value added amounted to an average of €5,900 per quarter per person employed, i.e. 1% more than in the second quarter of 2017.

Businesses invested €517 million, which is a 20% less than in the same period last year. The investments were made mostly in machinery and equipment as well as in buildings. The main investors were manufacturing, energy, and agriculture, forestry and fishing businesses, which accounted for nearly half of the total. Compared to the second quarter of 2017, investments in buildings as well as in machinery and equipment increased. Other investments were down as well.


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Editor: Dario Cavegn

Source: Statistics Estonia

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