site.btaFebruary Business Climate Almost Unchanged from Previous Month

After the National Statistical Institute (NSI) reported in January an improvement in business climate in Bulgaria for all sectors, the February picture remained almost unchanged. An increase in the business climate indicator is seen in industry, while in construction and retail trade it retained its January level. Only the services sector registered a decrease, the NSI said on Wednesday.

The overall business climate indicator in January increased by 3 points from the previous month after decreasing by 1.8 points in December 2023 due to the unfavourable business climate in construction, retail trade and services, and unchanged business climate in industry.

In all observable sectors in February, the main problems included the uncertain economic environment and labour shortages. These difficulties were compounded in construction by material prices, in retail and services by industry competition, and for retailers by insufficient demand.

The business climate in industry rose by 0.7 points in February as a result of positive assessments by entrepreneurs of the current business situation of enterprises. 

The February composite indicator for business climate in construction remained at its January level. Construction businesses have optimistic expectations for the business climate over the next six months and activity over the next three months.

The business climate in retail maintained its January level, and retailers' estimates of sales volumes over the past three months were slightly down, while their forecasts for the next three months were favourable.

The business climate in the services sector declined by 2.9 points mainly due to managers' deteriorating assessment of their current business situation. Their views on current and expected demand for services were also more moderate.