site.btaTotal Business Climate Indicator Down by 3.2 Percentage Points in July 2014 M/M

Sofia, July 28 (BTA) - In July 2014 the total business climate indicator  dropped by 3.2 percentage points from its June level, due to the state of the industry, construction, retail trade and services sectors, the National Statistical Institute (NSI) said Monday.  

The  business climate in industry composite indicator decreased by 2.1 percentage points in July month-on-month, which is the result of managers' worsening expectations about the state of enterprises in the next six months. The NSI registered a drop in the production assurance with orders, accompanied with more unafourable expectations about the activity of the enterprises over the next three months, as well as certain expectations about personnel cuts. The average capacity unitilization reached 74.2 per cent. The main obstacles to the business' development in this sector remain the insecure economic environment and the insufficiend domestic demand.

The business climate in construction composite indicator decreased by 3 percentage points due to the more reserved expectations of the construction entrepreneurs about the state of enterprises in the next six months. The insecure ecomonic enviroment continues to be the main factor impeding the enterpises' acvitity in this sector. The majority of construction managers expect the selling prices to remain unchanged over the next three months.

The business climate in retail trade composite indicator dropped by 6.2 percentage points in July compared to June 2014. The insecure economic environment, the competition in this branch and the insufficient demand remain the main obstacles to the development of activity in the sector, with the first two factors having a stronger negative effect during this month. Retailers expect the selling prices in the branch to remain unchanged over the next 3 months.

The business climate in services composite indicator went down by 2.8 percentage points. The main factors limiting the business activity in this sector continue to be related to the insecure economic environment and the competition in the branch.