Over 1/3 of Industrial Companies in Bulgaria Insecure About the Economic Environment and Workforce

Business | March 11, 2019, Monday // 10:11
Bulgaria: Over 1/3 of Industrial Companies in Bulgaria Insecure About the Economic Environment and Workforce

Over one-third of industrial companies point to an insecure economic environment as obstacles to their business and complain of labor shortages, according to the February survey of the National Statistical Institute. In construction, orders are on the increase, in services are looking for staff, and in commerce there are attitudes to raise prices. As a result of these divergent trends in February 2019, the overall business climate indicator remained at its level from the previous month.

The survey of NSI among representatives of industrial companies registered a deterioration of the production provision with orders, which is accompanied by decreased expectations for the activity in the next three months. The insecure economic environment and the labor shortage remain the main obstacles to the development of the business, indicated respectively by 35.3 and 33.9% of the enterprises. As a result, the composite indicator "business climate in industry" decreased by 2.3 percentage points.


In the construction are optimistic for the next 6 months

In construction, the business climate has risen by 1.3 percentage points due to the improved expectations of developers for the business situation of enterprises over the next six months. New orders for construction companies increased in the month and forecasts for the next three months were optimistic.


The main factors hampering construction companies are the precarious economic environment, the labor shortage and competition in the industry.


Attitudes to price increases in trade

In retail business, the business climate is unchanged compared to January, with business development forecasts over the next six months being more favorable. Their expectations for volume of sales and orders to suppliers over the next three months are also optimistic.


In the sector, the biggest obstacles are competition in the industry, uncertain economic environment and insufficient demand. Retailers are expecting some price increases.


The services are preparing to hire new staff

The most significant - with 3.4 points, is the improvement in services. Managers' estimates of business conditions are favorable and demand expectations over the next three months continue to improve. That is why the plans are for hiring additional staff.


Major problems in the sector are competition in the industry and the uncertain economic environment.

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