Bulgaria's business climate improves slightly in July
Bulgaria's business sentiment improved slightly in June, compared to the previous month, the National Statistical Institute (NSI) said on Thursday. The overall business sentiment indicator increased by 2.5 percentage points (pp) month-on-month in June due to more favorable business climate in retail trade and services, the NSI said in a monthly business climate survey. The business climate improved most in the services sector, by 8.2 pp, as a result of the more positive assessments and expectations of managers about the business situation of the enterprises. As regards the demand for services, manager’s expectations over the next three months remain favorable although more reserved compared to the previous month. The negative impact of the uncertain economic environment on the sector has strengthened over the last month, continuing to be the main obstacle for the activities of enterprises, the NSI said. The retail trade sector followed with an increase of 6.4 pp in July. Retailers’ assessments and about the present business situation of the enterprises as well as their expectations about the volume of sales and orders placed with suppliers over the next three months are both more favorable compared to June. The majority of the retailers expect the selling prices to remain unchanged over the next three months, the NSI added. The indicator in industry remained unchanged compared to its June level. According to industrial entrepreneurs, production activity has improved, but their expectations about the activity over the next three months are more moderate. The majority of industrial entrepreneurs expect the selling prices to remain unchanged over the next three months, the statement read. The indicator in the construction sector decreased by 1.8 pp, due to the worsened expectations of construction entrepreneurs about the business situation of the enterprises over the next six months Construction entrepreneurs' forecasts about the construction activity over the next three months are more reserved. There is also an increase in the number of clients with delay in payments in the sector, NSI noted.