Bulgaria's business sentiment slightly improved in June compared to May, as confidence across all three main sectors increased, the statistical office said on Wednesday.
The general business sentiment indicator increased by 1.4 percentage points (pp) month-on-month in June, despite continued perceptions of uncertainty in the economic environment, rising costs of materials and labour shortages, the National Statistical Institute (NSI) said in statement.
The composite indicator in the industry sector rose by 1.7 pp on the month in June, as industrial entrepreneurs expressed optimistic assessments of the current business situation of the enterprises as well as favourable expectations for the next six months. They also pointed to improved forecasts of production activity over the next three months.
"The most serious problems for the business development in the sector continue to be the uncertain economic environment and the storage of labour, identified by 61.6% and 30.2% of the enterprises, respectively," the NSI said.
In addition, nearly 30% of managers expect selling prices in industry to increase over the next quarter.
Business sentiment improved the most in the construction sector, by 2.1 pp on the previous month, on the back of similarly favourable expectations and forecasts for the next three months. However, companies in the sector reported an increase in the number of the clients who delayed payments in June.
The retail trade sector climate indicator rose by 1.0 pp in June, on the back of optimistic estimates of both sales volumes and orders to suppliers during the next quarter. Apart from economic uncertainty, competition in the sector and insufficient demand were cited as the biggest limitations to business development.
Lastly, the business sentiment indicator in the services sector was the only one to remain flat at the May level, as managers expressed reserved expectations for demand over the next quarter despite its satisfactory level at present.