Bulgaria’s Business Climate Improves in June

Bulgaria’s business climate index increased by 0.9 percentage points in June compared to May as a result of improved business sentiment in industry, retail trade and services, the National Statistical Institute announced on 28 June.

Services showed the biggest increase, by 3.9 percentage points, among the sub-indices measuring business confidence in the four sectors of the economy (industry, retail, services, construction). The increase was mainly due to the more optimistic expectations about the business position of the enterprises over the next six months, according to the NSI.

The managers’ opinions about demand for services over the next three months remained favourable.

The sub-index for industry rose by 0.8 percentage points in June in comparison to the previous month due to more upbeat entrepreneurs’ assessments about the present business position of their enterprises. However, their opinions about the present production activity were more reserved in comparison with May, while their expectations about the activity of the enterprises over the next three months improved, the NSI said. The managers expect selling prices in industry to remain unchanged over the next three months.

The sub-index for the retail trade sector increased by 0.9 percentage points compared to May due to improved retailers’ assessment of the present business position of their enterprises. Their expectations about the volume of sales and orders placed with suppliers over the next three months were more reserved compared to May.

The only sub-index that showed a decrease in June was in construction. The business climate indicator in the sector dropped by 1.8 percentage points due to more reserved entrepreneurs’ expectations about the business position of their enterprises over the next six months.