Bulgarian business climate up five percentage points in May – NSI

Bulgarian business climate up five percentage points in May – NSI

Sofia, May 30, 2016/Independent Balkan News Agency

By Clive Leviev-Sawyer of The Sofia Globe

A monthly survey of business sentiment in Bulgaria has found improved confidence in all sectors, pushing the total business climate indicator up by five percentage points in May 2016, the National Statistical Institute (NSI) said.

There was an improved business climate in all sectors monitored in the poll – industry, construction, retail trade and the service sector – the NSI said.

In industry, the business climate indicator was up by 4.1 percentage points compared with April 2016, boosted by managers’ more favourable assessments and expectations, according to the institute.

However, the uncertain economic environment continues to be the main factor limiting business development, followed by insufficient domestic demand.

In the construction sector, the business climate indicator was up by 6.7 percentage points, again with improved assessment and expectations among managers in the sector.

However, the poll found an increase in the number of the clients delaying payments. The main obstacles to business development in the construction sector remained the uncertain economic environment and competition in the sector.

In the retail trade, the indicator was 7.3 percentage points higher in May than in April, with retailers more optimistic in their views about the situation in the sector and their expectations for the coming months.

The main factors limiting activity continued to be the uncertain economic environment, competition in the sector and insufficient demand.

In the service sector, the indicator was up by 2.4 percentage points compared with the previous month, but managers were less favourable than they had been the previous month in their assessment of demand for services. At the same time, their expectations for the coming three months had improved.

The uncertain economic environment and competition in the sector remained the main problems for the business development, although there was a decrease in the negative impact these were expected to have, the NSI poll found.