Managers remained optimistic about their businesses in February, according to data of Bulgaria’s National Statistical Institute regarding Business Conjuncture.

In February 2014 the total business climate indicator preserves its level from the previous month. The inquiries report an improvement of the indicator in industry and construction, and a decrease in retail trade and service sector, the NSI reports.

The business climate in industry indicator increases by 1.5% in comparison with January due to the more optimistic managers’ assessments about the business situation of the enterprises.

However the present production activity is assessed as slightly decreased, while in the expectations about the activity in the branch over the next 3 months some improvement has been observed. The most serious obstacles for the business development in the branch continue to be connected with the uncertain economic environment and insufficient domestic demand, pointed out respectively by 54.7% and 42.4% of the industrial entrepreneurs.

As regards the selling prices in industry the managers expect them to remain unchanged over the next 3 months.

In February the composite business climate in construction indicator increases by 2.7% which is due to the improved construction entrepreneurs’ expectations about the business situation of the enterprises over the next 6 months.

Their forecasts with regard to the construction activity over the next 3 months are also more favorable. The inquiry also reports a decrease in the number of the clients with delay in payments. The main factor limiting the activity in the branch remains the uncertain economic environment, though in the last month a decrease of its negative influence is observed. In the second and third place are the financial problems and competition in the branch factors.

Concerning the selling prices in the construction the managers’ expectations are for preservation of their level over the next 3 months.

The composite indicator business climate in retail trade decreases by 2.1% compared to the previous month due to the worsening retailers’ expectations about the business situation of the enterprises over the next 6 months. However their prognoses concerning the volume of sales and orders placed with suppliers over the next months are more favorable.

In February the inquiry reports strengthening of the negative impact of the competition in the branch factor which shifts the enterprises’ difficulties related to the uncertain economic environment and insufficient demand. As regards the selling prices majority of the retailers foresee them to remain unchanged over the next 3 months.

In February the composite indicator business climate in service sector decreases by 3.0% which is due to the more unfavorable managers’ assessments about the present business situation of the enterprises.

With regard to the present demand for services their opinions are more reserved, while their expectations over the next 3 months are improved. The uncertain economic environment and competition in the branch continue to be the main factors limiting the business development in the branch, as in the last month a decrease of their negative influence is observed.

Concerning the selling prices the managers forecast preservation of their level over the next 3 months, the NSI Business Conjuncture report concludes.

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