Deteriorated Business Climate in September

Business | October 30, 2017, Monday // 13:02| Views: | Comments: 0
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Bulgaria: Deteriorated Business Climate in September pixabay.com

In October 2017, the business conjuncture in the country is assessed as unfavourable, reported the National Statistical Institute (NSI).

The total business climate indicator decreases by 1.8 percentage points compared to its September level as a result of the reduced managers’ expectations in all observed sectors - industry, construction, retail trade and services. 

The composite indicator ‘business climate in industry’ drops by 2.8 percentage points in comparison with the previous month  which is mainly due to the reserved industrial entrepreneurs’ expectations about the business situation of the enterprises over the next 6 months. The inquiry registers an improvement in their opinions for the production assurance with orders over the last 3 months, but that is not accompanied by increased expectations about the production activity over the next 3 months.

The average capacity utilization from July to October increases by 0.8 percentage points and it reaches 75.5%, as regards the expected demand over the next months is foreseen a surplus of capacity. The uncertain economic environment and shortage of labour remain the main obstacles for the business development pointed out respectively by 47.2% and 29.8% of the enterprises. As regards the selling prices in industry, the prevailing managers’ expectations are them to remain unchanged over the next 3 months.

In October the composite indicator ‘business climate in construction’ decreases by 1.6 percentage points as result of the more unfavourable construction entrepreneurs’ expectations about the business situation of the enterprises over the next 6 months. The production is assurance with contracts for 6.9 months, as a decrease of 0.5 months compared to the assessment from July is registered. At the same time, the expectations about new orders over the next 6 months are also more reserved.

The main factors, limiting the activity in the sector continue to be connected with the uncertain economic environment, competition in the branch and shortage of labour. Concerning the selling prices in construction, the managers do not foresee a change over the next 3 months.

The composite indicator ‘business climate in retail trade’ decreases by 1.1 percentage points compared to the September which is due to the worsening retailers’ expectations about the business situation of the enterprises over the next 6 months. However, their opinions about the volume of sales over the last 3 months, as well their expectations over the next 3 months are more favourable . The most serious difficulties for the business development remain the competition in the branch, uncertain economic environment and the insufficient demand, as in the last month strengthen the negative impact of the first two factors is observed.

As regards the selling prices, the inquiry registers certain expectations for increase, although the majority of the retailers foresee preservation of their level over the next 3 months.

In October as a result of the more unfavourable managers’ expectations about the business situation of the enterprises over the next 6 months, the composite indicator ‘business climate in service sector’ decreases by 0.6 percentage points.

At the same time their opinions about the demand for services over the next 3 months mark a slight improvement, but that refrain them from forecasts for additional hiring of personnel. The competition in the branch and uncertain economic environment continue to be the main obstacles for the activity in the sector, though the inquiry reports a decrease of the negative influence of the second factor. Concerning the selling prices the managers’ expectations are them to remain unchanged over the next 3 months.

 

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Tags: National Statistical Institute (NSI), business climate indicator, construction, real estate
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