Economy Perception Index down 2.15 points

The Economy Perception Index (EPI) in Moldova is down for the second month in a row. In August, the index plunged 2.15 points compared to July, reaching 115.1 points, Info-Prim Neo reports. An economist with the IDIS “Viitorul” think tank, Mihai Bologan, told a news conference on Tuesday that the EPI's slide has been caused by the last summer floods, the consumers' reticence, and by the drop of the euro. In August, the expectations of managers turned more moderate, as important drops were recorded in some industries, after registering high confidence in July, Mihai Bologan specifies. The constructions branch experienced a 12-point drop in confidence. The services see a steady fall in demand, reaching its lowest in August and starting, as a rule, to reinvigorate the next month, experts say. Agriculture is the only sector characterized by relative stability, its confidence index being 127.6 points. According to IDIS's research, the stability in agriculture was favored by the big flow of local food which propelled the selling companies' expectations to 115.1 points. The transports and communications registered a slight increase of the EPI, even going past the commerce sector. August also marks a deepening difference of perception between the managers from the Nistru's banks, as the EPI for the Transnistrian area is 96.5 points, over 17 points less than in July. “This is to prove the situation in the area won't stabilize. We can even expect a worse situation in the coming period of time,” Mihai Bologan thinks. According to the perception of 200 managers interviewed in the research, the inflation expected in September is 1.5%, and 4.15% for September – November. Unlike the last months, the companies do not expect price drops in any of the national industries.