Business sentiment in Bulgaria slides slightly in December 2015

Business sentiment in Bulgaria slides slightly in December 2015

Sofia, December 30, 2015/Independent Balkan News Agency

By Clive Leviev-Sawyer of The Sofia Globe

A monthly poll of the business climate in Bulgaria saw a slight decrease, by 0.7 percentage points, in December 2015 in comparison with November, a result of the more unfavourable business climate in construction, retail trade and service sector, the National Statistical Institute (NSI) said on December 30.

This was the second month in a row that executives’ opinions of the business climate in Bulgaria had deteriorated, but stronger sentiment in first half of the year means that the annual average for 2015 is the highest since 2008, the last year before the global recession.

The industry indicator remained unchanged compared to November, as improvements in manufacturing activity over the past three months were offset by expectations for fewer industrial orders in the next quarter.

The retail trade indicator dropped by 0.7 percentage points in comparison with November because of managers’ deteriorating expectations about the business situation of the enterprises over the next six months. Forecasts concerning the volume of sales and orders placed with suppliers over the next three months were also pessimistic.

The construction indicator fell by 1.2 percentage points as managers said current construction activity was lower than in November, and the outlook for the next three months was negative.

In the service sector, in December the composite indicator dropped by 2.6 percentage points, with managers saying current demand in the sector was poor, but with an outlook for improvement in the next three months.