site.btaSeptember Total Business Climate Indicator Down 2.6 Points on August

September Total Business Climate Indicator
Down 2.6 Points
on August


Sofia, September 29 (BTA) - In September the total business
climate indicator slid 2.6 percentage points from August due to
the less favourable business climate in industry, construction
and retail trade, the National Statistical Institute said.

The composite business climate indicator for industry dropped
2.2 percentage points from August mainly because entrepreneurs
were less optimistic about the current business situation in
their enterprises. The survey found they had smaller order
books, which led to lower expectations for business in the next
three months. The insecure economic environment and insufficient
domestic demand remain the key impediments to business
development in industry.

As to selling prices, most managers expect them to remain
unchanged in the next three months.

The composite business climate indicator for construction
dropped 7.3
percentage points due to the entrepreneurs' more pessimistic
assessments of the business situation in their enterprises. They
claim that construction activity slowed down compared with
August, and their expectations for the next three months are
more unfavourable. The insecure economic environment is the
worst obstacle to construction companies. The latest survey also
registered a stronger negative impact of competition in the
sector and financial problems.

Regarding selling prices, managers expect them to remain
unchanged in the next three months.

The composite business climate indicator for the retail trade
slid 1.2 percentage points from August due to the retailers'
more modest expectations for the business situation in their
companies.

At the same time, their expectations for the development of the
business situation in the next six months are more favourable,
and their expectations for orders to suppliers and sales volume
in the next three months have improved somewhat. The insecure
economic environment, low demand and competition in the sector
still are the main obstacles to the sector, with a stronger
negative impact increased than in August.

Most retail traders expect selling prices to remain unchanged in
the next three months.

The composite business climate indicator for the services sector
remained almost unchanged from August. In September, demand for
services is assessed as smaller, and expectations for the next
three months are lower.

The insecure economic environment still is the main impediment
to development, followed by competition. Managers expect the
selling prices of services to remain unchanged in the next three
months. VI/DD