Increasing share of firms feel lower demand, while capacity utilization rises

In numerous CEE countries, increasing number of firms see demand as a factor limiting production. In the last quarter of 2024, the balance went up further to 38. That goes hand in hand with relatively level of capacity utilization. Although it should be noted that capacity utilization improved compared to the previous quarters and is at the levels seen at the beginning of the year. It various across the countries as well and is the highest in Czechia and the lowest in Romania if we do a cross-country comparison. Quite weak demand in combination with subdued expectations for production in the coming months are signs that industry is unlikely to pick up more vigorously in the near future. Another factor that is in line with demand as a factor limiting production to a greater and greater extent is falling consumer confidence since mid-2024.