Bulgarian business confidence drops for first time in six months

Bulgarian business confidence drops for first time in six months

Sofia, June 29, 2015/ Independent Balkan News Agency

By Clive Leviev-Sawyer of The Sofia Globe

Confidence among Bulgarian business people dropped slightly in June 2015, the first decrease since the beginning of the year, with the more unfavourable business climate in the retail and service sectors bringing down the index.

This is according to the results of a poll released on June 29 by Bulgaria’s National Statistical Institute (NSI).

In June 2015, the total business climate indicator decreased by 0.7 percentage points compared to May, the NSI said.

The business climate indicator in industry was largely unchanged from May, while showing a slight decrease in production activity while executives’ expectations about the next three months also were more moderate, the institute said.

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

Most managers saw selling prices as remaining unchanged over the next three months.

In Bulgaria’s construction industry, the business climate indicator in June was similar to that in May, with managers retaining a favourable view about the coming three months.

The main obstacles for the business development in the construction industry continued to be connected with the uncertain economic environment, competition in the sector and financial problems. Managers expected selling prices to remain unchanged in the coming three months.

In the retail trade, the business climate index was down by 2.7 percentage points compared to May, brought down by retailers’ gloomier assessments about the present business situation.

However their forecasts regarding business trends in the retail trade in Bulgaria over the next six months were favourable, while they expected selling prices to remain unchanged in the next three months.

June 2015 saw the business climate indicator in the service sector drop by 0.9 percentage points as managers lowered their expectation about the coming six months.

Managers’ expectations about current demand for services were more reserved and there was pessimism about the next three months, the NSI said. The main obstacles to business development in the sectorc were the uncertain economic environment and competition in the sector. Most managers expected selling prices in the sector to remain unchanged in the coming three months, the insitute said.