The growth in total profit of business sector slowed down

Photo: SCANPIX

According to Statistics Estonia, in the 1st quarter of 2013 the total profit of the business sector was 647 million euros, which was 3% more than in the same period a year earlier. If the year ago the increase of enterprise sector’s total profit was on average 7% then in the 1st quarter this year the growth slowed down.

Compared to the 1st quarter of 2012, the total profit increased in almost all economic activities. The biggest contribution to the increase in the total profit was made by real estate, wholesale and energy enterprises. The profit of manufacturing, which holds the biggest share in the total profit of the business sector, decreased 9% compared to the 1st quarter last year, first of all due to the decrease of profits in the manufacture of fuel oil, food and wood products.

In the 1st quarter of 2013, enterprises sold goods and services for 12.1 billion euros, which was 14% more than in the same period a year ago. The turnover of wholesale and retail trade, manufacturing and transportation and storage enterprises, which have the biggest share in the gross net sales of the total business sector, increased 20%, 8% and 8%, respectively.

Compared to the 1st quarter of 2012, enterprises’ total costs increased 14%. Personnel expenses increased 8%. The number of persons employed and the number of hours worked increased 3% and 1%, respectively. The growth in enterprises’ labour and per-hour productivity continued. Labour productivity on the basis of the value added of the business sector increased 3%, amounting on an average to 4,800 euros per person employed in a quarter.

In the 1st quarter of 2013, enterprises invested 509 million euros, which is 2% less than in the same time of 2012. The biggest investments were made mainly in equipment and machinery and in the construction and alteration of buildings. The biggest investors were agricultural, energy and manufacturing enterprises with about a half of the total investments of enterprises. Compared to the 1st quarter of 2012, only investments in land and in the construction and alteration of buildings increased. Other investments decreased.

Total profit of the business sector, 1st quarter 2009 – 1st quarter 2013