Financial and business news from Bulgaria

The total business climate indicator decreases by 4.1 percentage points compared to October

In November 2020 The total business climate indicator decreases by 4.1 percentage points compared to its October level as a decrease in the indicator was recorded in construction and retail trade, reported the National Statistical Institute.
The composite indicator “business climate in industry” retains approximately its October level. The poll reports a slight decrease in current production activity, and the expectations of industrial

entrepreneurs for the activity over the next three months are more moderate. The most serious difficulty for business remains the uncertain economic environment, followed by insufficient demand from the country from abroad.

Regarding sales prices, managers envisage that they will remain unchanged for the next three months.

In November the constituent indicator “business climate in construction” dropped by 9.9 percentage points as a result of the deteriorated assessments and expectations of property developers about the business situation of enterprises. According to them, the new orders received in the last month are decreasing and their forecasts for activity over the next three months are less favourable. The uncertain economic environment continues to be the main problem for activity in the sector, followed by labour shortages. In terms of sales prices in the sector, property developers expect them to maintain their level over the next three months.

The composite indicator “business climate in retail” also decreased by 9.9 percentage points, due to the more reserved estimates and expectations of retailers about the business status of enterprises. Their forecasts for sales volumes and orders to suppliers are also pessimistic over the next three months. The main obstacle to business development remains an uncertain economic environment. Second and third place are insufficient demand and competition in the industry. Concerning sales prices, a majority of traders envisage that they will remain unchanged for the next three months.

In November, the benchmark “business climate in the service sector” maintains its October level. Managers' forecasts for business development in the sector over the next six months are deteriorating and their expectations regarding the demand for services over the next three months are pessimistic.

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