Bulgarian business sentiment drops for fifth straight month

The business climate index in Bulgaria worsened for the fifth consecutive month in October 2014, driven down mainly by the more unfavourable business climate in industry and retail trade, going by National Statistical Institute figures released on October 28.

In October 2014, the total business climate indicator decreased by 0.5 percentage points compared to the previous month, the NSI said.

The industry business climate indicator decreased by 1.1 percentage points in comparison with September because of industrial entrepreneurs’ worsening expectations about the business situation of the enterprises over the next six months, the poll found.

However, their assessments about the orders inflow over the past three months are more favourable, which is accompanied by improved expectations about production activity over the next three months, the NSI said.

In October, the average capacity utilization in industry was 73.4 per cent, and regarding
expected demand over the next months, businesses report a surplus of capacity.

The main problems for the business’ development in the sector continue to be the uncertain economic environment and insufficient domestic demand, pointed out respectively by 59.2 per cent and 29.2 per cent of the entrepreneurs, the NSI said.

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

The retail trade business climate indicator went down by 2.9 percentage points compared to the previous month because of more unfavourable retailers’ assessments and expectations Their forecasts concerning the volume of sales and orders placed with suppliers over the next three months were also more reserved.

The main obstacles for the sector continued to be the uncertain economic environment, insufficient demand and competition in the branch, though in the past month a decrease of the negative influence of these had been seen, the NSI said.

Retailers expected that selling prices would remain unchanged in the coming three months, the institute said.

(Photo: Leah Sawyer)



The Sofia Globe staff

The Sofia Globe - the Sofia-based fully independent English-language news and features website, covering Bulgaria, the Balkans and the EU. Sign up to subscribe to sofiaglobe.com's daily bulletin through the form on our homepage. https://www.patreon.com/user?u=32709292