site.btaNational Statistical Institute: Industry Fuels April Rise in Bulgaria’s Business Climate

The overall business climate indicator in Bulgaria rose by 1.1 points in April to 21.5%, National Statistical Institute data released Wednesday shows.

Industry was the only sector to register an improvement, while construction and services declined; retail remained unchanged from March. Labour shortages and an uncertain economic environment remained the main obstacles to growth. Only retailers expected selling prices to rise in the coming months, with other sectors forecasting stable prices.

Industry

The composite “business climate in industry” indicator advanced by 4.8 points to 19.3% on more optimistic assessments of companies’ current condition. Managers judged present production activity as favourable, though their three-month outlook stayed cautious. Labour shortages and economic uncertainty persisted as the chief constraints, albeit with a slightly weaker impact than in March. Most industrial firms anticipated steady selling prices over the next quarter.

Construction

The “business climate in construction” measure fell by 2.5 points to 21.7% as entrepreneurs gave more negative evaluations of their companies’ situation and expected weaker activity in the coming three months. Economic uncertainty, labour shortages and material costs continued to weigh on the sector, with their negative effects intensifying since March. Most builders expect sales prices to remain the same.

Retail

The retail indicator held at 36.5%. Expectations for sales volumes and supplier orders over the next three months stayed positive but more subdued than a month earlier. Sector competition overtook economic uncertainty as the leading challenge. Retailers, unlike other sectors, predicted higher selling prices in the short term.

Services

The services indicator slipped by 1.7 points to 10.7% on less favourable assessments of current business conditions and demand. Economic uncertainty and competition limited activity, cited by 55.6% and 34.3% of companies respectively. Most managers foresaw stable prices over the next quarter.