Poll: Business sentiment in Bulgaria worsened in August

A regular monthly poll by the National Statistical Institute (NSI) has found that business sentiment in Bulgaria worsened in August, driven down by gloomier views in the industry, retail trade and service sectors.

The NSI said that in August, the total business climate indicator dropped by 2.3 percentage points compared with July.

Previous monthly polls by the NSI had found more positive views about the business climate in May, but the indicator dropped in June, then remained largely unchanged in July.

The NSI said that in industry, the indicator in August dropped by 1.5 percentage points, a result of managers taking a more unfavourable view about the situation of their businesses in coming six months.

The downward trend in the industry sector was influenced most by the uncertain economic environment, followed by the shortage of labour and insufficient domestic demand.

In Bulgaria’s retail trade, the indicator plummeted by 5.7 percentage points in August, with retailers more reserved in their expectations about the coming six months. Their forecasts about the volume of sales and orders placed with suppliers over the next three months were also unfavourable.

The uncertain economic environment, competition in the sector and insufficient demand continued to be the main problems for business development for the retail trade, the poll found.

In Bulgaria’s service sector, the indicator went down by 3.7 percentage points, with managers seeing the business situation of their enterprises over the next six months as unfavourable. They were more reserved about current and expected demand for services.

The only indicator to go up was that in the construction sector, by a mere 0.7 percentage points.

Managers in the construction sector were more positive about their current business situation, but their forecasts about the business situation over the next six months, and construction activity over the next three months, had become more unfavourable.

For managers in the sector, the main obstacles continued to be the uncertain economic environment, shortage of labour, costs of materials and competition in the sector, the NSI said.

(Photo: Steve McGrath/freeimages.com)

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