Bulgaria’s business climate gloomier in September, for fourth month running

Bulgaria’s business climate gloomier in September, for fourth month running

By Clive Leviev-Sawyer of the Sofia Globe

Business people in Bulgaria were gloomy in September 2014, as the overall business climate indicator measured by the National Statistical Institute (NSI) registered a downturn for the fourth month consecutively.

In September, the business climate indicator dropped by 2.6 percentage points, driven down by the more unfavourable business climate in industry, construction and the retail trade, the NSI said on September 29.

The industry business climate indicator dropped by 2.2 percentage points, mainly because of industrial entrepreneurs’ worsening assessments of the current business situation. A further aggravating factor was a reduced expectation about orders over the coming three months.

The uncertain economic environment and insufficient domestic demand continue to be the most serious factors limiting the business’ development in the sector, according to the NSI.

Managers expected selling prices in industry to remain unchanged over the next three months.

In construction, the business climate indicator dropped 7.3 percentage points, driven down by increasing pessimism about the business situation now and over the next three months. Managers’ dim views were influenced by the economic environment, competition in the sector and financial problems.

The business climate in retail fell by 1.2 percentage points, however, retailers’ forecasts for the next six months were more favourable.

In the service sector, the business climate was about the same as in August 2014.

Demand was seen as decreased and expectations about the next three months were reserved, the NSI survey found.