Major findings

• The overall business climate has slightly improved during last two surveys, but no tangible change is reported compared to the same periods of last year. Companies remain optimistic about the coming six months, but the level of their optimism has decreased compared to the previous survey.
• Regional differences are considerable. Business condition has sharply improved in Nangarhar and Herat region has also a positive indicator; while Kabul, Kandahar and Balkh reported no significant change in their deteriorating businesses conditions.
• Agriculture is the only sector with positive business climate indicator in this survey, while manufacturing and construction are the two most suffered sectors.
• Businesses have reported that their order books keep shrinking, but they are in a better position compared to the same season in 2016.
• Security, market and demand, and infrastructure are major desired improvements for business developments.
• Construction, Trade, Manufacturing and Service have fired more people than those that they have hired during last three months. Only Agriculture's employment indicator is positive.
• According to this survey, companies are optimistic about their employment prospects (9.5), but the level of their optimism has decreased compared to the previous survey. Agriculture expects the highest rate of employment (33.1) and manufacturing the lowest (-0.6).

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