Bulgaria's Business Climate Stable Sept 2012 M/M

In September 2012, the total business climate indicator in Bulgaria preserves its level from previous month as worsening of business conjuncture is observed only in the service sector.

The data was released Friday by the country's National Statistical Institute, NSI.

In September, the composite indicator "business climate in industry" remains at its level from the previous month. The inquiry registers certain improvement of the production activity over the last 3 months. However, production assurance with orders decreases, which is associated with reduced expectations about the activity of the enterprises over the next 3 months.

The main factors limiting the development of the business in the branch are the uncertain economic environment, insufficient domestic and foreign demand as pointed out by 52.3%, 44.2% and 32.6% of the industrial enterprises respectively.

Regarding sales prices, the expectations are to preserve their level over the next 3 months.

In comparison with August, the composite indicator "business climate in construction" increases by 4.1 percentage points, which is due to the more favorable construction entrepreneurs' assessments about the present business situation of the enterprises.

In their opinion, the present construction activity is improved as compared to the previous month and the expectations about the next 3 months are for the activity to maintain the same level. The last inquiry registers an increase in the number of clients with delay in payments.

The uncertain economic environment and financial problems remain the main factors limiting the activity of the enterprises in the branch. In September, compared to August, the negative influence of the factor "competition in the branch" is strengthened by 6.2 percentage points.

Concerning sales prices in the branch, the prevailing expectations are they to remain unchanged over the next 3 months.

The composite indicator "business climate in retail trade" increases by 3.6 percentage points in comparison with the previous month due to the improved retailers' assessments about the present business situation of the enterprises. Regarding sales and orders placed with suppliers, over the next 3 months their expectations are more reserved.

The factors limiting the most the activity of the enterprises continue to be the uncertain economic environment, the insufficient demand and the competition in the branch although in the last month a decrease of their negative impact is observed.

Regarding sales prices the managers do not expect an increase over the next 3 months.

In September, the composite indicator "business climate in service sector" decreases by 7.6 percentage points in comparison with August which is attributed to the more moderate managers' expectations about the business situation of the enterprises over the next 6 months.

Regarding demand for services, the present tendency is estimated as reduced slightly and the expectations over the next 3 months show certain pessimism.

The uncertain economic environment and competition in the branch remain the main factors limiting the development of the business as in the last month their negative influence is strengthened.

Concerning sales prices in the service sector, the prevailing expectations are for preservation of their level over the next 3 months.

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