BUSINESS CLIMATE

The Total Business Climate Indicator decreases by 3.7 percentage points in comparison with February


In March 2020, the total business climate indicator decreases by 3.7 percentage points in comparison with February which is due to the worsened business climate in industry, retail trade and service sector, the National Statistical Institute  said in a press release.

Industry

The composite indicator ‘business climate in industry’ decreases by 5.2 percentage points as a result of the pessimistic industrial entrepreneurs’ assessments and expectations about the business situation of the enterprises. According to them, there is a decrease of the production assurance with orders, which is also accompanied by reduced expectations about the activity and the personnel over the next 3 months.

In the last month the unfavourable influence of the factor ‘uncertain economic environment’ is strengthened, which shifts to the second place the difficulties of the enterprises connected with the shortage of labour. Concerning the selling prices in industry, the prevailing managers’ expectations are them to remain unchanged over the next 3 months.

Construction

In March the composite indicator ‘business climate in construction’ increases by 1.4 percentage points which is mainly due to the favourable construction entrepreneurs’ assessments about the present business situation of the enterprises. In their opinion, there is some increase in the new orders inflow at the last month, and their expectations about the construction activity over the next 3 months are improved.

The inquiry registers a strengthen of the negative impact of the factor ‘shortage of labour’, as 52.2% of the managers is pointed out it as main problem for their activity. In second and third place remain the difficulties, connected with the uncertain economic environment and competition in the branch.

As regards the selling prices, the managers foresee them to preserve their level over the next 3 months.

Retail trade

The composite indicator ‘business climate in retail trade’ drops by 6.6 percentage points as a result of the more unfavourable retailers’ assessments and expectation about the business situation of the enterprises. Their forecasts about the volume of sales and the orders placed with suppliers (from both domestic and foreign market) over the next 3 months are also more reserved.

The competition in the branch continues to be the main problem for the business development. An increase of the negative influence of the factor ‘uncertain economic environment’ is reported, which shifts to the third place the difficulties, connected with the insufficient demand.

As regards to the selling prices, the majority of the retailers expect them to remain unchanged over the next 3 months.

Service sector

In March, the composite indicator ‘business climate in service sector’ decreases by 3.1 percentage points which is due to the reserved managers’ assessments and expectations about the business situation of the enterprises. As regards the demand of services the present tendency is assessed as slight reduced, while the expectations over the next 3 months are favourable.

The main factors limiting the activity remain connected with the competition in the branch, uncertain economic environment and shortage of labour. At the same time the last inquiry reports an increase of the unfavourable impact of the factor ‘insufficient demand’ (by 9.1 percentage points). Concerning the selling prices in the service sector, the managers foresee them to preserve their level over the next 3 months.

 

 

NEWS FROM BCCI
An innovative freight exchange platform will provide new services for the business
Data and information exchange will support shipping and logistics companies in the Balkans Още
Growing interest of companies in BG BARCODE
Manufacturers and brand owners from various sectors are actively uploading information about their products in the platform Още
LEGISLATION AND REGULATION
Legal Amendments Related to the Adopted Economic State Aid
Gugushev & Partners Law Office Още
CHARITY INITIATIVE
Ministry of Health launches DMS campaign to support Bulgarian medical professionals working under COVID-19 conditions
BUSINESS CLIMATE
The Total Business Climate Indicator decreases by 3.7 percentage points in comparison with February
Worsened business climate in industry, retail trade and service sector Още
TRANSPORT AND LOGISTIC
Border crossing points at which the Green Corridors for delivery of goods will pass are defined
Crossing at these Green Corridor points should not exceed 15 minutes at inland land borders Още
FINANCE
Bulgaria’s GDP to decline by 3% in the worst case scenario
And unemployment will see a 2% increase Още
Consolidated Fiscal Programme Balance for March 2020 estimated to be negative based on operational data and estimates