Bulgaria's Business Climate Stable Sept 2013 M/M

In September 2013, the total business climate indicator in Bulgaria preserves its level from the previous month, according to data released Friday by the country's National Statistical Institute, NSI.

The inquiry reports an improvement of the indicator in industry and worsening in construction and service sector.

The composite indicator "business climate in industry" increases by 2.6 percentage points in comparison with August, due to the more optimistic entrepreneurs' assessments and expectations about the business situation of the enterprises. The inquiry registers an improvement of the present production activity, as the expectations over the next 3 months are also for an increase of the activity.

The uncertain economic environment and insufficient domestic demand remain the main factors limiting the activity in the branch, as they were pointed out respectively by 56.0% and 46.5% of the enterprises.

Regarding sale prices in industry, the prevailing managers' expectations are for preservation of their level over the next 3 months.

In September, the composite indicator "business climate in construction" decreases by 2.5 percentage points, which is due to the more unfavorable construction entrepreneurs' assessments and expectations about the business situation of the enterprises. In their opinion the present construction activity is improved compared to August, but their prognoses over the next 3 months are more pessimistic.

The main obstacle for the business development in the branch continues to be the uncertain economic environment, whose negative influence strengthens in the last month (by 3.7 percentage points). "Financial problems" and "competition in the branch" keep the second and third places.

Concerning sale prices in construction the managers' expectations are for them to remain unchanged over the next 3 months.

The composite indicator "business climate in retail trade" preserves its level from the previous month The retailers' forecasts about the business development it the branch over the next 6 months are favorable. At the same time, their expectations about the volume of sales and orders placed with suppliers over the next 3 months remain optimistic although more reserved in comparison with August.

The most serious factor, limiting the activity in the branch, continues to be the uncertain economic environment even though there is a decrease of its negative impact by 14.7 percentage points. At the same time the factors "insufficient demand" and "competition in the branch" have strengthened their negative influence.

Regarding sale prices, the prevailing managers' expectations are for preservation of their level over the next 3 months.

In September the composite indicator "business climate in service sector" decreases by 2.2 percentage points due to the worsening managers' assessments and expectations about the business situation of the enterprises. However, their forecasts about demand for services over the next 3 months are improved, but this is not accompanied with plans for additional hiring of personnel.

The main obstacles for business advancement in the branch remain the uncertain economic environment, competition and insufficient demand.

Concerning sale prices in the service sector, most of the managers foresee they will remain unchanged over the next 3 months.

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