Total Business Climate Indicator in Bulgaria Decreases by 0.8% in Comparison with August
In September 2017, the total business climate indicator4 decreases by 0.8 percentage points in comparison with August which is due to the more unfavourable business climate in construction, retail trade and service sector, The National Statistical Institute reports.
The composite indicator ‘business climate in industry’ increases by 1.9 percentage points compared to the previous month as a result of the more optimistic industrial entrepreneurs’ assessments and expectations about the business situation of the enterprises.
The present production activity is assed as slight improved, as the expectations about the activity over the next 3 months remain favourable. The main factors, limiting the enterprises continue to be connected with the uncertain economic environment and shortage of labour, although in the last month a decrease of the negative impact of the first factor is observed . Concerning the selling prices in industry, the managers do no foresee a change over the next 3 months.
Data shows that in September the composite indicator ‘business climate in construction’ decreases by 1.8 percentage points (Annex, Figure 6) which is entirely due to the more reserved construction entrepreneurs’ expectations about the business situation of the enterprises over the next 6 months. In their opinion there is some increase in the new orders inflow at the last month, but their expectations about the construction activity over the next 3 months are worsened.
The uncertain economic environment, competition in the branch and shortage of labour remain the main problems for the business development . As regards the selling prices in the sector, the managers’ expectations are for preserving of their level over the next 3 months.
The composite indicator ‘business climate in retail trade’ decreases by 3.5 percentage points as result of the shifting of the retailers’ assessments and expectations about the business situation of the enterprises from ‘good’ towards ‘satisfactory’ (normal for the season). Their forecasts about the volume of sales and order places whit suppliers over the next 3 months are also more reserved.
In September the composite indicator ‘business climate in service sector’ decreases by 2.5 percentage points which is due to the more unfavourable managers’ assessments and expectations about the business situation of the enterprises. At the same time in their forecasts about the demand for services over the next 3 months, certain pessimism is observed. The main obstacles for the business development continue to be connected with the competition in the branch and uncertain economic environment, as in the last month their negative influence is strengthened. As regards the selling prices in the sector, the prevailing managers’ expectations are to preservation of their level over the next 3 months.
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