Bulgaria’s business climate indicator has dropped by 0.9 percentage points in July compared to previous month, with the services sector leading the decline.

Business sentiment in the construction sector has improved, while the indicators for the industry and retail trade have remained approximately attheir June levels, the National Statistical Institute (NSI) said in a monthly survey of business climate in Bulgaria on Wednesday.

The composite index for the services sector decreased by 5.7 percentage points as the managers’ expectations about the business situation of the enterprises over the next six months shifted towards ‘unchanged’ from ‘improved’.

In July, the composite indicator for the construction sector increased by 1.3 percentage points on the back of the more favourable entrepreneurs’ assessments of the present business position of the enterprises, the NSI said.

The composite indicator for the industry sector was little changed compared to June as entrepreneurs’ assessments of the present production activity improved while their expectations about the activity over the next three months became more unfavourable. In July the average capacity utilization increases by 0.9 percentage points in comparison with April, reaching reaches 73.3%.

The composite indicator for retail trade remained approximately at its June level, as retailers’ expect an increase in the number of orders they will place with suppliers over the next three months.