April 28 (SeeNews) - Bulgaria's business sentiment showed a slight improvement on a monthly basis in April after staying unchanged in March, the country's statistical office said on Friday.
The overall business sentiment indicator rose by 0.7 percentage points in April compared to the previous month thanks to an improved business climate in industry, the National Statistical Institute (NSI) said in a monthly survey.
The composite indicator in industry showed the only growth this month, of 2.3 percentage points. It reflected improved assessments and expectations about the business situation of the enterprises. According to entrepreneurs in the sector, the uncertain economic environment and shortage of labour are the most serious challenges to business development. Expectations about exports over the next three months are optimistic, with selling prices forecast to preserve their levels.
In April, the business climate indicator in retail trade maintained its level from the previous month. The retailers' expectations about the business situation over the next six months are favourable and the forecasts for the volume of sales over the next three months are improved. The main problems for the business continue to be the uncertain economic environment, competition and insufficient demand. Selling prices are projected to remain unchanged over the next three months.
On the other hand, the composite indicator in services, excluding trade, declined by 0.5 percentage points, due to the more reserved expectations of the entrepreneurs in the sector about the business situation over the next six months. The managers’ forecasts about the demand for services over the next three months are unfavourable. The uncertain economic environment and competition in the branch are seen as the main obstacles for the enterprises. Most managers expect selling prices to stay at the same level over the next three months.
In construction, the business sentiment indicator went down by 0.8 percentage points, due to the assessments and expectations of managers about the business situation shifting from better to remaining the same. The present construction activity is seen as slightly improved, while expectations about new orders over the next 6 months are optimistic. The uncertain economic environment is seen as the biggest challenge to enterprise activity, followed by costs of materials and a shortage of labour. Looking ahead, over a third of the managers, or 34.6%, forecast selling prices to increase over the next three months.