Bulgaria's business sentiment slightly improves in May

A decline in the business climate was recorded in the industry sector, offset by more optimistic sentiments in construction, retail trade and services, the National Statistical Institute (NSI) said in a monthly survey.

The business climate indicator in industry dropped by 6.9 pp due to negative assessments and expectations regarding the business situation. The survey noted lower production insurance with orders and worsened expectations about production activity over the next three months.

The biggest challenges in the industry sector remain the uncertain economic environment and shortage of labour.

In contrast, the composite indicator in retail trade surged by 10.9 pp, reflecting retailers’ optimistic assessments and expectations about the business situation. Their forecasts about sales volume and orders placed with suppliers over the next three months are also positive, with a slight increase in selling prices anticipated.

The composite indicator in construction went up 4.8 pp from its April level as a result of positive assessments and expectations from construction entrepreneurs about the business situation. Their projections about the construction activity over the next three months are also more favourable, despite a reported rise in the number of clients with delayed payments.

Finally, the composite indicator in services, excluding trade, climbed by 1.3 pp, driven by more favourable assessments of managers about the current business situation. Their views on the present service demand have also improved, though their projections for the next three months are more moderate.