Bulgaria’s business confidence indicator has risen by 2.5 percentage points in April compared to the previous month due to the improved business climate in construction and retail trade, the country’s statistical office NSI said on Wednesday.

The business climate in industry was little changed from its March level, while in construction and retail trade increases were recorded, the NSI said in a monthly report.

The present production activity in industry is assessed as slightly improved, but entrepreneurs’ expectations about the activity over the next three months are more unfavourable compared to March. The average capacity utilization in April is 1.8 percentage points below its January level, reaching 74.3%. Company managers also report a surplus of capacity with regard to the expected demand over the next months.

In April, the business climate in construction has increased by 8.4 percentage points on the back of more optimistic managers’ assessments and expectations about the business position of the enterprises. The managers’ expectations about new orders over the next six months have also improved compared to January.

The business climate in retail trade has increased by 5.3 percentage point compared to March due to the improved retailers’ assessments and expectations about the business position of the enterprises. However, their forecasts for the volume of sales and orders placed with suppliers over the next three months are more reserved.

The uncertain economic environment remains the most serious hindrance to the development of the activity in the branch, according to managers.

In April, the business climate in services has decreased by 2.1 percentage points compared to March due to the more unfavourable managers’ assessments about the present business position of the enterprises.

However, the managers’ forecasts for the development of the sector remain optimistic. Their expectations about the demand for services over the next three months have also improved.