What industries will grow in 2018?

What industries will grow in 2018?

The largest earnings increases are estimated by agriculture companies in 2018

Even if growing, the profit of construction companies undergoes a major correction with 38% companies in 2018 vs 50% in 2017 earmarking a profit growth by+5% – +10% and 3% vs. 33% one of+10% – +20%. 19% companies in agriculture compared with 60% in 2017 move from +1% – +5% profit growth rate on the upper levels of +20% – +30%. The profit of industrial production companies remains similar to last year’s expectations, but with a slight downward trend. The IT industry is not homogeneous in terms of profit growth in 2018, with only 66% of companies, compared to 89% in the previous year, predicting profits growth this year. At the same time, 10% fewer companies say they will have profit increases between +1%- +5%, but 22% in 2018 compared to 8% in the previous year, are expecting increases of +10% – +20%. In the service industry, only 10% of companies versus 30% previously say they will have a higher profit by +20% – +30% in 2018.

Retail companies keep investment levels at the same level as last year

The investment appetite of construction companies declines significantly; only 5% compared to 49% a year earlier say they will have higher investments by +20% – +30%. With 19% of companies compared to 2% in the previous year, to increase investments by +20% – +30%, agriculture companies seem more confident in 2018. Industrial production companies shift from +5% -+20% (52% in 2017 vs. 39% in 2018), with 20% more companies predicting increases by +20% – +30% in 2018. IT companies’ investments appear to be in the middle growth bracket +1% – +10% (57% of companies) and drops from 56% to 1% of companies in the range +10% – +20%. Retail companies keep investments at about the same level as in 2017 (74% in 2018 vs. 77% in 2017 expect increases). Investment in business services drops from 52% in 2017 to 31% for the range of +5% – +20% in 2018.

The growth in employee numbers is moderate in companies across all industries

For most construction companies, the number of employees decreases at all levels, with the exception of the +10% – +20% level where 8% of the responding companies, compared to 0% in the previous year, expect the number of employees to increase. In agriculture, 32% of companies, compared with 12% in 2017, expect the number of employees to remain the same, but 41% compared to 80% estimate increases of +1% – +10%. In industrial production, with 17% more companies see an increase in the number of employees in the range of +5% – +30%. In the IT industry, only 52% of companies compared to 89% in 2017 say they will increase the number of employees. In retail, for 35% of companies, the number of employees will increase by +1% – +5% and 14% fewer companies see increases in the range of +10% – +20%. This year 12% of professional service companies say they will see a reduction in the number of employees compared to 0% in the previous year.