site.btaBusiness Climate Improves in Services Sector, Stays Unchanged in Retail Trade, Worsens in Industry and Construction

ESD 12:35:31 29-07-2019
LN1241ES.107
107 - ECONOMY - STATISTICS - BUSINESS CLIMATE

July Business Climate Improves in Services Sector,
Stays Unchanged in Retail Trade,
Worsens in Industry and Construction


Sofia, July 29 (BTA) - In July 2019, the total business climate indicator remains more or less unchanged from the previous month, the National Statistical Institute (NSI) said Monday. It shows some decline in industry and construction, remains at the June level in retail trade and increases in the services sector.

In industry, the composite Business Climate indicator decreased by 1.7 percentage points as a result of slightly worsened assessment and expectations of entrepreneurs about the business situation of their companies.

The NSI inquiry registers more unfavourable forecasts about export and production over the next three months. The average capacity utilization from April to July increases by 1.2 percentage points and reaches 76.9 per cent, and the expectations for the coming months are for a surplus of capacity.

The shortage of labour and uncertain economic environment continue to be the main obstacles for business growth in industry.

As regards selling prices in industry, certain expectations for an increase are reported, although the majority of managers do not expect a change over the next three months.

In construction, the composite Business Climate indicator in July decreases by 0.8 percentage points due to a shift of business people's assessment about the present business situation from "good" to "satisfactory".

As regards the construction activity over the past three months, the NSI inquiry registered some decrease from June and the expectations for the next three months remain reserved.

Shortage of labour, uncertain economic environment and competition in the sector are seen as the biggest hurdles to business in the sector.

As regards the selling prices in construction, managers expect some increase over the next three months.

In retail trade, the composite Business Climate indicator preserves its level from the previous month. Retailers' expectations about business in the next six months are positive. Their forecasts about the volume of sales and orders placed with suppliers over the next three months remain favourable, though more reserved in comparison with June.

Competition, low demand and uncertain economic environment continue to be the most serious obstacles for business growth. Last month saw a strengthening of the negative impact of labour shortage.

Concerning selling prices, managers' expectations are that they will remain unchanged over the next three months.

In the service sector, the composite Business Climate in July increases by 1.7 percentage points. That was mainly due to managers' positive assessments of the present business situation.

They are seeing an improvement in demand for services but their expectations for the next three months are less favourable.

The main hurdles to growth in business remain competition, uncertain economic environment and labour shortage.

The managers expect some increase of selling prices in the services sector but the majority of them see no major change coming in the next three months. LN/
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