Bulgaria Business Sectors Remain Stable in February

Business | February 26, 2010, Friday // 15:03|  views

Bulgaria's business sectors remained generally stable in February, when compared to the previous month, according to official statistics. Photo by nsi.bg

Bulgaria's business sector remained generally stable in February, when compared with the preceding month, according to official preliminary data published on Friday.

The National Statistical Institute (NSI) has reported there was no significant change in the sector, with the overall indicator or benchmark remaining almost the same as it was in January.

There was a small but positive growth in the assessment of short-term prospects for the business sector, while longer-term expectations stayed flat, as managers continued to report reduced production activity and reduced orders, both domestic and international, over the next six months.

Insufficient demand and the general uncertainty of the economic climate continued to be the greatest concerns for business managers.

The construction industry, however, reported an overall decline of 1,8% in monthly activity. This was partly attributed to lower evaluations of property developers of the current business situation, which registered a drop in orders, and the increasingly common problem of clients delaying payments in recent months.

Over the next quarter, managers expect an upturn in construction activity. One company in three is confident they will be more active.

This in turn leads them to predict that unemployment in the sector will reduce, with many managers more confident about retaining their workforce, although 20% still believe there will be continuing layoffs,

as the overall economic environment continues to limit their potential activity.

The retail trade sector indicator rose by 2,2% when compared with the previous month. This was largely due to a more optimistic view by managers of the prospects for sales over the next six months.

Whereas sales have dropped over the past three months, orders placed with suppliers have now begun to increase.

Tough competition within the retail industry is regarded as having a negative effect, overall, and managers believe there may be further layoffs of staff in the sector.

The services sector declined by 2% in February, largely due to lower expectations of managers in state enterprises. Expectations for the next quarter are also negative, according to managers.

In all the four sectors of industry, the common complaint is that all activities continue to be affected by competition in each sector and the uncertain economic environment.

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Tags: NSI, business sectors, economic insecurity, unemployment


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