Business Climate Index Down by 0.9 Points in June 2018, M/M

In June 2018, Bulgaria's general business climate index dropped by 0.9 points compared with May 2018 as a result of a less favourable business climate in the construction and services sectors, the National Statistical Institute reported on Monday.

 

The index component which describes the business climate in industry rose by 1.5 points in June 2018 compared with May 2018 due to optimistic assessments and expectations of entrepreneurs about the condition of their companies. According to them, current production activity was improving and forecasts for the next three months remained positive.

 

The insecure economic environment and the shortage of labour remained the most serious problems affecting business development - they were identified by 36.8 per cent and 32.5 per cent of companies, respectively.

 

Entrepreneurs expect that industrial price levels will remain unchanged in the next three months.

 

The index component which describes the business climate in the construction sector went down by 3.4 points in June 2018 compared with May 2018 as a result of less optimistic expectations of entrepreneurs about the condition of their companies in the next six months. They also lowered their forecasts about construction business activity in the next three months.

 

Over the last month, the poll registered a stronger negative impact of labour shortage, which became a more prominent factor than the problems associated with the insecure economic environment and market competition.

 

Entrepreneurs expect that prices in the construction sector will remain unchanged in the next three months.

 

The index component which describes the business climate in retail trade rose by 0.8 points. The most serious problems in the sector are still associated with market competition. This is followed by low demand and the insecure economic environment. Price levels are expected to rise somewhat in the next three months.

 

The index component which describes the business climate in the services sector fell by 4.5 points in June 2018 compared with May 2018. Market competition and the insecure economic environment hindered business most notably. Most entrepreneurs expect price levels in the sector to remain unchanged in the next three months.