Bulgaria's business climate worsens in December

The overall business sentiment indicator declined by 1.7 percentage points (pp) month-on-month in the last month of 2020 due to a less favourable business climate in the services and retail sectors, the NSI said in a monthly business climate survey.  

The business climate indicator in services fell by 7.8 pp month-on-month in December as managers' assessments and expectations about the business situation of the enterprises were more pessimistic. Their opinions about the present and expected demand for services are also negative, the NSI said.

The indicator in retail decreased by 5.8 pp on a monthly comparison basis as a result of the unfavourable retailers’ assessments and expectations about the business situation of the enterprises in the sector. Managers' forecasts about the volume of sales and the orders placed with suppliers over the next three months are also more reserved, the NSI noted.

The business climate indicator in construction preserved its level from the previous month when it decreased by 9.9 pp. As regards present construction activity, NSI's survey shows a certain decrease in comparison with the previous month, while forecasts about the next three months remain reserved.

The business climate indicator in the industry sector rose by 2.6 pp month-on-month in December due to the favourable managers’ assessments and expectations about the business situation of the enterprises. According to managers in the sector, over the last month, there is a certain increase in production assurance with orders, which, however, is not accompanied by increased expectations about the production activity over the next three months.

According to the NSI, the uncertain economic environment remains the main obstacle to business development in all sectors.