Bulgaria: The Business Climate in Industry and Commerce is Improving
The business climate in industry and commerce in Bulgaria improved in January, while it worsened in construction and services. Thus, the general indicator remains unchanged compared to December 2022, announced the National Statistical Institute.
The uncertain economic environment continues to be a major obstacle to business, in all sectors some managers expect prices to continue to rise.
The state of industrial enterprises is assessed as good by the heads of the companies, and thanks to this the indicator of the business climate for the industry grows by 1 point in the first month of the year.
The average capacity load in January 2023 is 0.8 points above the level of October 2022 and reaches 75.1%, and in view of the expected demand in the coming months, a shortage of capacities is predicted.
However, managers' forecasts for exports and manufacturing activity over the next three months are moderate.
The uncertain economic environment and the shortage of labor force remain the main problems for the activity of industrial companies, although in the last month a decrease in the negative influence of the first factor has been reported, according to the statisticians.
One fifth of industrial company managers foresee a price increase in the next three months.
The decrease in the business climate in construction is by 0.8 points as a result of the more restrained estimates of construction contractors for the current business condition of the enterprises. Their opinions about the construction activity in the last three months are also negative, while their expectations are that with the approach of spring there will be a revival.
The most serious challenges in the construction sector continue to be the uncertain economic environment, material prices and labor shortages. And in this sector, managers expect price increases in the next three months.
The improvement of the business climate in the retail trade was by 1.9 points, thanks to the optimistic expectations of retailers about the state of their companies in the next six months.
However, this optimism is accompanied by unfavorable forecasts for the volume of sales and orders to suppliers in the next three months.
The uncertain economic environment, competition in the industry and insufficient demand remain the main obstacles for traders, and the share of those predicting a price increase is increasing.
Managers at companies offering services, which until now expected their condition to improve, now hope it will remain the same, and this lowered the business climate indicator by 1.1 points for the month. However, their forecasts for demand for services over the next three months are improving.
The uncertain economic environment, the competition in the industry and the shortage of labor are the main obstacles to their business pointed out by the managers.
According to the survey, 18.2% expect sales prices in the service sector to increase over the next three months.
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