NSI: Business Climate in Bulgaria improves in November

Regular Business Surveys of the National Statistical Institute reported improvements in the business environment in the country in November, excluding construction. The overall business climate indicator increased by 0.6 percentage points compared to October, driven by improved business conditions in industry and retail. The indicator for the Services sector is unchanged. The main factors hampering business continue to be linked to the precarious economic environment and labor shortages. According to the surveyed managers, sales prices will remain unchanged over the next three months.

Manufacturing. The composite indicator "business climate in industry" increased by 1.8 points as a result of the improved expectations of industrial entrepreneurs on the business situation of enterprises over the next six months. The survey recorded a certain increase in production assurance with orders, but this was not accompanied by increased expectations of production activity over the next three months.

Construction. In November, the business climate in the sector deteriorated by 2.2 points, due to the more reserved estimates of the contractors for the current business situation of the enterprises. Their opinions on construction activity over the past three months, as well as their expectations for the next three months, are also less favorable.

Retail. The Business Climate Index rises by 1.0 percentage point compared to October as a result of improved retailers' expectations about the business situation of enterprises over the next six months. Their forecasts of volume of sales and orders to suppliers over the next three months are also favorable. Competition in the industry continues to be the main obstacle to business, followed by uncertain economic environment and insufficient demand.

Services. In November, the business climate in the sector remained roughly the same as in the previous month. Managers' expectations for business development in the sector over the next six months are more optimistic and their service demand forecasts over the next three months are improving.