Bulgaria's business climate improved on a monthly comparison basis in October, the National Statistical Institute (NSI) said on Thursday.
The overall business sentiment indicator increased by 0.5 percentage points (pp) month-on-month in October, mostly due to a more favourable business climate in the services sector, the NSI said in a monthly business climate survey.
The business climate indicator rose by 3.4 pp in services due to the improved managers’ assessments and expectations about the business situation of the enterprises.
A certain improvement of managers' expectations regarding the demand for services over the next three months is observed, but it is not accompanied by additional hiring of personnel, the NSI said adding that selling prices in the services sector are expected to remain unchanged over the next three months.
The indicator in retail increased by 1.3 pp on a monthly comparison basis in October, after improving by 4.2 pp in September.
The survey shows that retailers’ expectations about the business situation of the enterprises over the next six months are more optimistic in October. Their forecasts about both the volume of sales and orders placed with suppliers over the next three months have also improved.
The business sentiment indicator in the construction sector added 0.6 pp as compared to its September level. At present, construction activity is assessed as slightly improved, while managers' forecasts about the activity over the next three months are favourable.
In the last month the inquiry also reports a decrease in the number of clients with delay in payments, NSI added.
The indicator in industry decreased by 1.3 pp, as a result of more moderate industrial entrepreneurs’ expectations about the business situation of the enterprises over the next six months.
NSI's survey indicates an improvement in the opinions of industrial entrepreneurs regarding the production assurance with orders over the last three months, which, however, is not accompanied by improved expectations about the production activity over the next three months.
The average capacity utilization from July to October increased by 2.4 pp, reaching 72.8%. As regards the expected demand over the next months, a surplus of capacity is foreseen, the NSI also said.