OREANDA-NEWS. October 15, 2009. In September 2009, the business activity index Parex Index showed growth for the first time since the beginning of 2007. In comparison to June readings, its value climbed by 2 points and reached 33.16 points. Previously, in the second quarter of this year, Parex Index had sunk to an all time low, reported the press-centre of Parex Bank.

Taking a look at various groups of enterprises, in the 3rd quarter of 2009, Parex Index increased in 20 and declined only in 5 groups. The largest increase in index is seen among companies in Latgale region, medium and large companies, as well as companies with both local and international capital.

Guntis Belavskis, head of Retail Sector: “Even though data from a single quarter are not enough to make convincing forecasts and say that these trends will continue, it is important to preserve this trend, as the belief that the situation is stabilising or improving is a very important stimulus increasing the economic activity. Currently, it is most important to make sure that entrepreneurs feel support from the government and commercial banks so that they can develop their businesses further. Companies, which have shifted their markets and optimised their operations probably feel more stable now than they did at the beginning of the year. At the same time, however, this is the final call for those companies that have delayed restructuring, as they may well find themselves disappearing from the market.”

Both Parex present and future indexes increased in 3Q2009, which means that company managers are more optimistic about the current economic situation and future forecasts.

All eight Parex Index sub-indexes have increased this quarter, with most substantial growth in the “economic activity of the industry”, “general economic activity in the country”, “company turnover”, and “financial situation of the company” indexes.

About Parex Index
The first business activity index in Latvia – Parex Index – was established at the beginning of 2004 by Parex banka in cooperation with SKDS, the leading centre of market and public opinion research. The main purpose of the research is to establish a single index describing Latvian entrepreneurs subjective appraisal of the economic situation of the State. The index is calculated based on the poll and the analysis of the opinions of 750 Latvian businesses of different size and from different industries.

The index reflects the opinion and the forecasts of the business community on the level of economic activity of the country and in their particular industry, as well as an evaluation of different indicators of company operations, such as profitability, turnover, financial position, number of staff, and investment level. If the index value exceeds 50 points, this is an indicator of certain level of optimism regarding the issue; in turn, the value below 50 points depicts pessimism.