site.btaStatistics: Business Climate in Construction, Services in Bulgaria Improves in November

In November 2023, the overall business climate indicator remained roughly at its October level, the National Statistical Institute (NSI) said on Wednesday. An increase in the indicator was recorded in the construction and services sectors, while industry saw a decrease. Only in retail trade did the indicator maintain its level of the previous month.

In October 2023, the indicator declined by 2.7 points compared to the previous month, and a decrease was observed in industry, construction and retail trade, while an increase was recorded in the services sector.

The most serious problems for the industry's activity remain the uncertain economic environment and labour shortages, cited in November by 50% and 32% of enterprises respectively. In October, the NSI survey reported an increase in the negative impact of the factors "insufficient demand from home" and "insufficient demand from abroad".

For the construction sector in November, the main obstacles to business development were related to the uncertain economic environment, material prices and labour shortages. Construction managers' assessments in October reported an increase in the negative impact of all three factors.

The uncertain economic environment, industry competition, and labour shortages remained the main factors constraining retailer activity in November, with their negative impact increasing over the past month. In October, the most serious difficulty for business development was the uncertain economic environment, cited by 62.1% of businesses. Second and third place was occupied by competition in the industry and labour shortage, according to the NSI.

In November, the composite indicator "business climate in industry" decreased by 2.9 points, due to the more reserved assessments and expectations of industrial entrepreneurs about the business situation of enterprises.

The indicator "business climate in construction" increased by 3.5 points as a result of improved assessments and expectations of construction entrepreneurs about the business situation of enterprises. At the same time, their forecasts for construction activity over the next three months are for it to remain at the same level.

The composite indicator "retail business climate" maintained its October level. Retailers' views on sales volumes over the past three months and their expectations for the next three months are positive.

In November, the composite indicator "business climate in the services sector" increased by 0.8 points as a result of managers' more favourable assessments of the current business situation of enterprises.