Bulgaria's Business Climate Falls by 2.7% in March 2011

For the month of March 2011, Bulgarians statistics show that the total business climate indicator is down by 4.1% in comparison with February. File photo

In March 2011, the total business climate indicator is down by 4.1% in comparison with the previous month, the National Statistical Institute, NSI, has informed Monday.

The composite indicator of business climate in industry has decreased by 4.1 percentage points in comparison with February. The inquiry registers increased managers' pessimism about the expected business situation of enterprises over the next 6 months, low expectations about incoming orders and forecasts of future layoffs.

The major problems for the business in industry continue to be the uncertain economic environment and the insufficient demand. In March, the inquiry also reports an increase of the expectations about a rise of prices in industry over the next 3 months.

In March, the composite business climate indicator for construction is down by 1.7 % in comparison with the preceding month, mostly due to the more pessimistic managers' expectations about the business situation of enterprises over the next months.

The composite indicator "business climate in retail trade" in March is up by 4.1% comparison with February, which is due to a shifting of the opinions about the future business situation while the current one is assessed as worsening.  The managers report that the sales over the last months have decreased, but the inquiry registers positive expectations about the sales and the prices over the next 3 months.

In March, the composite indicator of business climate for the service sector has decreased sharply by nearly 15 percentage points in comparison with the previous month due to the more unfavorable managers' assessments and expectations about the business situation of enterprises. The opinions about the present and expected demand for services are also more pessimistic, but there is an expected increase of personnel over the next 3 months.

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