Net income down 2.7 pct in May against April, up y-o-y

The average net income was RON 1,806 (EUR 403.34) in May, decreasing against the previous month by RON 51 (2.7 percent), according to the National Institute of Statistics (INS). The average gross earnings were RON 2,500 (EUR 558.33), 2.5 percent lower than in April 2015.

The highest values of the average net nominal income were recorded in extraction of crude petroleum and natural gas (RON 6,523), while the lowest were in accommodation and food service activities (RON 1,018).

The level of the average net income registered decreases in the majority of activities belonging to the economic sector (excluding activities of public administration, education, health and social assistance). Report shows this was caused by amounts granted in April as occasional bonuses (including quarterly, annual, performance and Easter bonuses), amounts from other funds (including meal or gifts tickets) or by the production achievements or higher receipts (depending on contracts). Also, falls were registered due to lower receipts (depending on contracts), as well as hiring staff with low income.

The most significant decreases in the average net revenue have been recorded in insurance, reinsurance and pension funding (15.7 percent), financial service activities (between 10.5 and 13 percent), electricity, gas, steam and air conditioning supply, manufacture of beverages, manufacture of basic metals, water transport, telecommunications, water collection, treatment and supply, professional, scientific and technical activities (between 6.5 and 8.5 percent).

Increases of the average net income as against April 2015 were determined by the occasional bonuses and amounts for net profit, by production achievements or higher receipts (depending on contracts).

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The most significant rises have been recorded in extraction of crude petroleum and natural gas (29.7 percent), manufacture of coke and refined petroleum products, forestry and logging, mining and air transportation (between 4.5 and 8 percent), and activities auxiliary to financial services and insurance activities, land transport and transport via pipelines, motion picture, video and television programmes production (between 3 and 3.5 percent).

The budgetary sector (economic activities of public administration, education and health and social assistance) registered slight decreases of the average net income against the previous month in education (down 0.4 percent), while earnings  in public administration, respectively in health and social assistance increased by 0.6 percent.

Year on year, the average net nominal revenue increased by 7.4 percent. The real income index (calculated as ratio between net nominal income index and general consumer price index) was of 106.2 percent.

Against April, the real income index was 96.8 percent. Compared to October 1990, the real income index was 132.6 percent, 4.3 percentage points lower than the one recorded in April.

Natalia Martian