Bulgaria's Business Climate Up Nov 2013 M/M

In November 2013, the total business climate indicator in Bulgaria increased by 1.7 percentage points compared to its October level.

This is attributed to the more favorable business climate in industry and service sector.

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

The composite indicator "business climate in industry" increased by 4.3 percentage points in comparison with the previous month due to the improved managers' assessments and expectations about the business situation of the enterprises. However, the present production activity is assessed as decreased, as the expectations over the next 3 months are also more unfavorable compared to the opinions expressed last month.

The uncertain economic environment and insufficient domestic demand remain the main obstacles for the business development in the branch, 55.4% and 43.3% of the industrial entrepreneurs respectively pointed out.

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

In November, the composite indicator "business climate in construction" remained close to its October level. Construction entrepreneurs' expectations both about the business situation over the next 6 months and the construction activity over the next 3 months are more unfavorable.

The main factor limiting the activity in the branch continues to be the uncertain economic environment, followed financial problems. At the same time, the inquiry reports strengthening of the negative impact of the factor "competition in the branch" (by 4.4 percentage points).

Concerning sale's prices in construction, the managers expect them to remain unchanged over the next 3 months.

The composite indicator "business climate in retail trade" decreased by 0.6 percentage points, which is attributed to the more moderate retailers' expectations about the business situation of the enterprises over the next 6 months. Regarding volume of sales and orders placed with suppliers, their expectations over the next 3 months are also more reserved.

The uncertain economic environment and insufficient demand remain the factors limiting to the greatest extent the business development in the branch, as in November a decrease of the negative impact of the third most important factor "competition in the branch" is observed (by 6.0 percentage points).

Regarding sale's prices, retailers foresee preservation of their level over the next 3 months.

In November the composite indicator "business climate in service sector" increased by 0.9 percentage points due to the more favorable managers' assessments about the present business situation of the enterprises.

However their opinions were more reserved regarding present and expected demand for services.

The main obstacle for the development activities in the branch continues to be the uncertain economic environment, followed by competition. However in the last month the inquiry registers strengthening of the unfavorable influence of the factor "insufficient demand.

Concerning sale's prices in the service sector, the managers expect them to remain unchanged over the next 3 months.

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!