NSI: The Total Business Climate Indicator Decreases by 1.4 Percentage Points Compared to the Previous Month

Business | October 29, 2019, Tuesday // 15:09| Views: | Comments: 0
Bulgaria: NSI: The Total Business Climate Indicator Decreases by 1.4 Percentage Points Compared to the Previous Month www.pixabay.com

In October 2019, the total business climate indicator decreases by 1.4 percentage points compared to the previous month as a result of the more unfavourable conjuncture in industry, construction and retail trade. Industry, the National Statistical Institute reported in a press release.

The composite indicator ‘business climate in industry’ decreases by 1.0 percentage point, which is due to the more moderate industrial entrepreneurs’ assessments and expectations about the business situation of the enterprises. At the same time, the inquiry also reports reduced expectations about the export and production activity over the next 3 months. In October the average capacity utilization slightly decreases (by 0.6 percentage points) in comparison with July and it reaches 76.3%. The main factors, limiting the activity remain the uncertain economic environment and shortage of labour. As regards the selling prices in industry, the managers’ expectations are for preservation of their level over the next 3 months. Construction.

In October the composite indicator ‘business climate in construction’ drops by 3.9 percentage points as result of the more unfavourable construction entrepreneurs’ assessments and expectations about the business situation of the enterprises. In the next half year, the managers expect decreased inflow of new orders, which according to them will lead to certain decrease of the activity in the short term. The shortage of labour continues to be the most serious obstacle for the business development, followed by the uncertain economic environment and competition in the branch. Concerning the selling prices in construction, the prevailing construction entrepreneurs’ expectations are them to remain unchanged over the next 3 months.

The composite indicator ‘business climate in retail trade’ decreases by 2.3 percentage points, which is due to the more reserved retailers’ assessments and expectations about the business situation of the enterprises. At the same time, their forecasts about both the volume of sales and orders placed with suppliers over the next 3 months are also worsened. The most serious difficulties for the activity remain connected with the competition in the branch, insufficient demand and uncertain economic environment. As regards the selling prices, the majority of the retailers expect preservation of their level over the next 3 months.

In October the composite indicator ‘business climate in service sector’ increases by 0.9 percentage points as a result of the more favourable managers’ assessments about the present business situation of the enterprises. However, their expectations about the demand for services over the next 3 months are more reserved. The competition in the branch and uncertain economic environment continue to limit with most extend the activity of the enterprises. Concerning the selling prices in the service sector, the managers foresee certain increase, although the prevailing expectations are them to remain unchanged over the next 3 months.

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Tags: business climate indicator, decrease, National Statistical Institute (NSI)
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