Bulgaria's Business Climate Records Slight Increase in April
In April the total business climate indicator in Bulgaria increased by 1.7% which is due to the improved business climate in industry, construction and retail trade.
The composite indicator "business climate in industry" increased by 1.4% in comparison with March due to the more favorable industrial entrepreneurs' expectations about the business situation of the enterprises over the next 6 months, as Bulgaria's National Statistical Institute data revealed.
According to the businesses, the present production activity is preserved, and in the expectations about the activity in the branch over the next months some optimism has been observed, but it is more moderate compared to the previous inquiry.
The average capacity utilization in April is by 1.3% below in January level and it reaches 69.5%. The enterprises report a surplus of capacity with regard to the expected demand over the next months. The uncertain economic environment and insufficient domestic demand remain the main obstacles for the business development in the branch, pointed out respectively by 53.6% and 44.3% of the managers.
Concerning the selling prices in industry the inquiry reports certain expectations for an increase over the next 3 months.
In April the composite indicator "business climate in construction" increases by 6.8% which is due to the optimistic construction entrepreneurs' assessments and expectations about the business situation of the enterprises.
In their opinion the present construction activity is improved, as their prognoses over the next 3 months remain favorable. The production is assured with contracts for a longer time period in comparison with 3 months earlier-5.2 months against 4.8 in January.
At the same time the managers' expectations concerning the new orders over the next 6 months are improved. The main factors limiting the business development in the branch continue to be connected with the uncertain economic environment, financial problems and competition in the branch. As regards the selling prices in the construction the majority of the managers expect them to remain unchanged over the next 3 months.
The composite indicator "business climate in retail trade" increases by 0.8% compared to the previous month due to the improved retailers' expectations about the business situation of the enterprises over the next 6 months. However their forecasts concerning the volume of sales and orders placed with suppliers over the next 3 months are more moderate. The uncertain economic environment, insufficient demand and competition in the branch remain the main factors limiting the activity of the enterprises. The retailers' expectations about the selling prices in the branch are for preservation of their level over the next 3 months.
In April the composite indicator "business climate in service sector" decreases by 1.8% due to the more unfavorable managers' assessments about the present business situation of the enterprises. However they remain optimistic in prognoses about the development of the business, as their expectations about the demand for services over the next 3 months continue to improve. The main factor limiting the activity in the branch remains the uncertain economic environment followed by competition in the branch and insufficient demand. Concerning the selling prices the prevailing managers' expectations are for them to remain unchanged over the next 3 months.
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