Firms reported a modest reduction in the need for bank loans, while fewer firms reported areduction in the availability of bank loans. As a result, the increase in the financing gap wassmaller than in the previous survey round.
Fewer enterprises reported an increase in turnover over the last three months, but firms weremore optimistic on developments in the next quarter. Cost pressures remained widespreadacross size classes but declined somewhat – particularly for interest expenses.
Firms expected their selling prices and wages to increase by averages of 3.3% and 3.8%respectively in the next 12 months, with both figures representing a moderation relative to theprevious survey round.
Firms’ inflation expectations declined, with their median expectations for annual inflation in one,three and five years standing at 3.4%, 3.0% and 3.0% respectively. Firms considered that risksto the inflation outlook in five years were tilted to the upside, rather than the downside.
