In December 2014, the total business climate indicator decreased by 1.1 percentage points on the month, according to Bulgaria’s National Statistical Institute (NSI).

The decrease was due to the deterioration in the estimates of managers in the spheres of construction and retail trade.

The composite indicator “business climate in industry” increased by 2.4 percentage points from November 2014 due to the improvement in the expectations of managers about the condition of their businesses over the next six months.

At the same time, their forecasts about the production activity over the next three months were also favorable, yet they did not state plans to hire new staff.

The uncertain economic environment and the insufficient demand remained the main obstacles to developing business in the sector, as argued by 58.4% and 28.1% of the polled entrepreneurs, respectively.

As regards sales prices in the sphere of industry, managers predicted that they would remain unchanged over the next three months.

In December 2014, the composite indicator “business climate in construction” fell by 8.2 percentage points due to the deterioration in evaluations and expectations of entrepreneurs in the sphere.

The polled managers claimed that the construction activity in December 2014 had decreased on a monthly basis and they were rather pessimistic in their forecast about the next three months.

The uncertain economic environment was cited as the main difficulty for businesses in the sector, followed by competition and financial problems.

Managers said that they expected sales prices in construction to remain unchanged over the next three months.

In December 2014, the composite indicator “business climate in retail trade” fell by 4.6 percentage points on the month.

The forecasts about the volume of sales and orders over the next three months were also rather modest.

The main obstacles to the development of business in the sector were said to be the uncertain economic development, the competition, and the insufficient demand.

The negative impact of competition and insufficient demand increased in December 2014.

Managers in the sector said that they expected sales prices to remain unchanged over the next three months.

In December 2014, the composite indicator “business climate in the service sector” increased by 2.4 percentage points.

At the same time, expectations of managers about demand for services also improved, but they did not say they would hire new employees.

The uncertain economic environment was the main obstacle to businesses in the sector, followed by competition.

Managers said they expected sales prices in the sphere of services to remain unchanged over the next three months.

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