Bulgaria's Business Climate Worsens by 0.7% October 2011

Bulgaria's Business Climate Worsens by 0.7% October 2011

Bulgaria's total business climate indicator marks a decrease by 0.7% in October 2011 as compared with the previous month, according to the country's National Statistical Institute.

The managers who have been asked to analyze the present business situation of the enterprises in the industrial and service sectors have been more moderate in their assessments, the Institute points out.

The composite indicator "business climate in industry" drops by 1.8% compared to September. Despite of some increase of orders from abroad, the total production assurance with orders within Bulgariaøs industry keeps its level from the latest months. The average capacity utilization from July to October drops by 2.6% to 69.4% .

The managers are still optimistic about the development of their industrial enterprises within the next 3 to 6 months, even though the difficulties related to the uncertain economic environment and the insufficient demand are still considered serious.

In October 2011, the composite indicator „business climate in construction" preserves approximately the level from the previous month. There is no change in the managers' opinions regarding the present and the expected business situation of construction enterprises.

However, the inquiry reports on a decrease in construction activity as compared to the previous month and the expectations about the next 3 months are more unfavorable. A further decrease of personnel is also expected.

The production assurance with orders within the construction sector is assessed to be 4.8 months, as there is a decrease of 0.8 months in comparison with the assessment from July. At the same time, the expectations about new orders over the next 6 months are more reserved.

The main factor limiting activity in the branch remains the uncertain economic environment, although its influence decreases by 6.6% over the last month.

For a third consecutive month, Bulgaria's composite indicator "business climate in retail trade" stays at long-term average level. The balance indicator of the present business situation of enterprises drops by 3.9% due to a shifting of the managers' assessments to the more moderate opinions similarly to industry. However, they remain optimistic about the development of their businesses as the expectations about sales and orders placed with suppliers over the next 3 months increases.

In October, the composite indicator of „business climate in service sector" drops by 0.7 % as compared to the previous month. That is due to the managers' more moderate assessments and expectations about the business situation in enterprises. The present demand for services slightly decreases as compared to September, as the expectations about the next 3 months do not foresee change in demand.

The uncertain economic environment and the competition in the branch continue to be the most serious factors limiting the activity of the enterprises in the service sector./Source: Sofia News Agency/

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