Bulgaria's business sentiment flattish in Feb

A decline in the business climate was posted in the service sector, compensated by a more optimistic sentiment in industry, while construction and retail trade kept their January levels, the National Statistical Institute (NSI) said in a monthly survey.

The business sentiment indicator in services lost 2.9 pp as a result of worsened manager assessments about the current business situation of companies. Their views on the present and expected service demand are more moderate, as well.

In contrast, the business climate indicator in industry rose by 0.7 pp this month, driven by positive assessments about the present business situation. The current production activity is seen as unfavourable but is projected to improve over the next three months.

The composite indicator in construction remained unchanged. However, the construction entrepreneurs’ expectations about the business situation over the next half year and construction activity over the next three months are optimistic.

Managers forecast an increase in construction selling prices, although the majority expect them to keep their level over the next three months.

In February, the composite indicator in retail trade preserved its prior-month level. Retailers’ assessments of the sales volume over the past three months are slightly worse, whereas their forecasts over the next three months are favourable. The share of retailers that see selling prices increasing over the next three months is growing compared to January.