site.btaUncertain Economic Environment, Labour Shortages Hamper Business Development in Bulgaria

The uncertain economic environment, labour shortages, competition, insufficient demand and costs of materials continue to play main role in limiting business development in the industry, construction, retail trade and services sectors in September 2024, according to data published by the National Statistical Institute (NSI) on Monday.

In September 2024, the total business climate indicator decreases by 1% compared to the previous month (from 23.5% to 22.5%), as a result of the more unfavourable business climate in the industry sector. 

The composite indicator 'business climate in industry' drops by 5.2 percentage points (from 23.5% to 18.3%), which is due to the modest industrial entrepreneurs' assessments and expectations about the business situation. The production activity decreases, and the outlook about the activity over the next 3 months worsens.

In September, the composite indicator 'business climate in construction' keeps its August level (increases slightly from 23.3% to 23.4%). The construction entrepreneurs' expectations about the business situation over the next 6 months and the activity over the next 3 months, are optimistic. The uncertain economic environment, shortage of labour, costs of materials and competition continue to limit the business development.

The composite indicator 'business climate in retail trade' increases by 4.7% (from 30.5% to 35.2%), which is due to positive retailers' expectations about the business situation over the next six months. Their forecasts about the volume of sales and orders placed over the next 3 months are optimistic.

In September, the composite indicator 'business climate in service sector' stands at its level from the previous month (increases slightly from 16.8% to 17.2%). The expectations for demand of services over the next 3 months are favourable.