Bulgaria's Business Climate Up Jan 2014 M/M
The total business climate indicator has increased by 4.6 percentage points in January, according to official data by Bulgaria's National Statistical Institute.
The increase compared to December 2013 is due to the more favorable managers' opinions from all observed sectors - industry, construction, retail trade and service sector, according to NSI's "Business Conjuncture, January 2014" report.
The composite indicator "business climate in industry" has increased by 5.4 percentage points compared to December 2013.
At the same time managers' prognoses concerning the production activity over the next 3 months have improved, which is not accompanied by increased expectations about export over the next 3 months.
The average capacity utilization in January is by 1.0 percentage point over its October 2013 level and it reaches 70.8 %, as regards the expected demand over the next months a surplus of capacity is foreseen.
The uncertain economic environment and insufficient domestic demand remain the main obstacles for the business development in the branch, pointed out by 52.5% and 45.1% of the managers respectively.
Concerning the selling prices in industry the expectations are for preservation of their level over the next 3 months.
In January the composite indicator "business climate in construction" increases by 6.6 percentage points. In the next half year managers expect increased inflow of new orders in construction which according to them will lead to a certain increase of the activity in the short term.
The main factor limiting the activity in the branch remains the uncertain economic environment, followed by the financial problems and competition in the branch. As regards the selling prices in the branch, the prevailing managers' expectations are they to remain unchanged over the next 3 months.
The composite indicator "business climate in retail trade" increases by 1.4 percentage points in comparison with the previous month which is due to the more optimistic retailers' expectations about the business situation of the enterprises over the next 6 months.
The inquiry also registers more favorable expectations with regard to the orders placed with suppliers over the next 3 months. The uncertain economic environment, insufficient demand and competition in the branch continue to be the main obstacles for the activity development in the branch.
In January the composite indicator "business climate in service sector" increases by 3.7 percentage points due to the improved managers' assessments and expectations about the business situation of the enterprises.
The most serious difficulties for the activity in the service sector continue to be connected with the uncertain economic environment, competition in the branch and insufficient demand. With regard to the selling prices, managers foresee no change over the next 3 months.