Bulgaria’s business climate indicator drops again in July

Bulgaria’s business climate indicator drops again in July

Sofia, July 28, 2015/ Independent Balkan News Agency

By Clive Leviev-Sawyer of The Sofia Globe

Bulgaria’s business climate indicator dropped in July 2015, for the second straight month, after increases in the first five months of the year.

This is according to the results of a poll released on July 28 by the country’s National Statistical Institute (NSI).

In July 2015, the overall business climate indicator decreased by 1.8 percentage points compared to June, which was because of the more unfavourable business climate in the industry, retail trade and service sectors.

The industry indicator decreased by 2.9 percentage points in comparison with June, mainly due to managers’ worsening expectations about the business situation of the enterprises over the next six months.

Managers in industry also had more unfavourable forecasts about exports and production activity over the next three months.

The retail trade indicator dropped by 0.6 percentage points in comparison with June because of managers’ more moderate expectations about the business situation of the enterprises over the next six months.

However, their forecasts concerning the volume of sales and orders placed with suppliers over the next three months remain optimistic, though more reserved compared to the previous month.

In the service sector, in July the composite indicator dropped by 3.6 percentage points because of the shifting of the managers’ expectations about the business situation of the enterprises over the next six months from ‘better’ towards preserving ‘the same’.

With regard to the demand for services, the present tendency is assessed as slight improved, while in expectations for the next three months, some pessimism was observed, the NSI said.