Bulgaria's Business Climate Down Dec 2013 M/M
In December 2013, the total business climate indicator marked a decrease by 3.4 percentage points compared to its level from the previous month.
The data was released by the country's National Statistical Institute, NSI.
NSI conjuncture inquiries registered a worsening business climate in industry, construction and retail trade.
The composite indicator "business climate in industry" decreased by 3.2 percentage points in comparison with November, which is attributed to the worsening industrial entrepreneurs' assessments about the present business situation of the enterprises.
At the same time, their expectations regarding the business situation and production activity over the next months were also more reserved.
The main obstacles for the business development in the branch remain the uncertain economic environment and insufficient domestic demand.
Concerning sale prices, the expectations are for preservation of their level over the next 3 months.
In December, the composite indicator "business climate in construction" dropped by 9.1 percentage points due to the increased pessimism in the managers' assessments and expectations about the business situation of the enterprises.
According to them, the present construction activity is decreased compared to the previous month and their forecasts over the next 3 months are also more unfavorable. At the same time the inquiry registers an increase in the number of clients with delay in payments.
The uncertain economic environment, competition and financial problems continue to be the main factors limiting the activity in the branch as in December a decrease of their negative impact is observed.
Regarding sale prices in the branch, the most of the managers forecast they are to remain unchanged over the next 3 months.
The composite indicator "business climate in retail trade" decreased by 2.9 percentage points.
This is attributed mainly to the worsening retailers' expectations about the business situation of the enterprises over the next 6 months, which is accompanied by more pessimistic prognoses about both the volume of sales and the orders placed with suppliers over the next 3 months.
The main factors limiting the activity in the branch continue to be the uncertain economic environment, insufficient demand and competition in the branch as in the last month a decrease of the negative impact of the first two factors is registered.
Regarding sale prices, the prevailing retailers' expectations are for preservation of their level over the next 3 months.
In December, the composite indicator "business climate in service sector" increased by 1.4 percentage points compared to its November level, mainly due to the more favorable managers' expectations about the business situation of the enterprises over the next 6 months.
Regarding present and expected demand for services their opinions are also improved.
The uncertain economic environment, competition, and insufficient demand remain the main obstacles for the business development in the branch.
Regarding sale prices in the service sector, the inquiry registers certain expectations for an increase over the next 3 months.
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