Bulgaria's business climate down Oct 2013 M/M

In October 2013, the total business climate indicator in Bulgaria decreases by 2.1 percentage points compared to its level from the previous month due to the more unfavorable business climate in industry and service sector.

The data was released Monday by the country's Nte, NSI.

The composite indicator "business climate in industry" decreases by 4.6 percentage points in comparison with September, which is due to the more reserved managers' assessments and expectations about the business situation of the enterprises. At the same time, the current production activity is assessed as slightly improved, but the expectations about the activity over the next 3 months are more unfavorable.

The average capacity utilization in October reaches 69.8%, while the expected demand over the next months is foreseen a surplus of capacity.

The uncertain economic environment and insufficient domestic demand remain the main factors limiting the activity of enterprises in the sector.

Regards sale prices, the industry entrepreneurs' expectations are for preservation of their level over the next 3 months.

In October 2013, the composite indicator "business climate in construction" remains approximately at its level from the previous month.

According to managers, current construction activity is down, compared to the previous month as their forecasts over the next 3 months are also more unfavorable. At the same time, an increase of the number of clients with delay in payments is registered.

In October, production assurance with orders is preserved at its previous level and is assessed to be 4.8 months. However, the construction entrepreneurs' expectations regarding new orders over the next 6 months are more pessimistic.

The uncertain economic environment, followed by financial problems, competition in the branch and insufficient demand, remain the main obstacles for the business development in the sector.

Regards sale prices in the sector, the majority of managers expect that they will remain unchanged over the next 3 months.

The composite indicator "business climate in retail trade" increases by 1.6 percentage points compared to September, due to improved retailers' assessments and expectations about the business situation of enterprises. However, their prognoses about the volume of sales and orders, placed with suppliers over the next 3 months, are more reserved.

The uncertain economic environment, insufficient demand and competition in the sector remain the main obstacles for its business development, as the last inquiry registered strengthening of their negative influence.

The prevailing retailers' expectations are for preservation of sale prices over the next 3 months.

In October, the composite indicator "business climate in the service sector" decreases by 3.3 percentage points, which is attributed to the shifting of managers' assessments about the business situation of the enterprises from "improving" towards preserving "the same level."

Regarding demand for services, the current tendency is assessed as improved, but expectations over the next 3 months are more unfavorable.

The uncertain economic environment, competition in the sector, and insufficient demand continue to be the main factors, limiting its activity, but a decrease of their unfavorable impact is observed in October.

Regards sale prices in the service sector, the inquiry reports certain expectations for an increase over the next 3 months.

Adapted from Novinite