Bulgaria's business sentiment worsens in June

All observed sectors posted declines in their business climate, the National Statistical Institute (NSI) said in a monthly survey.

The composite indicator in retail trade shed 2.3 pp to 38.3%, reflecting retailers’ more moderate assessments and expectations about the business situation. Forecasts for sales volume and orders placed with suppliers over the next three months are also reserved, while selling prices are seen to remain stable.

The biggest challenges in the sector continue to be the competition in the branch, uncertain economic environment, insufficient demand and labour shortage.

The business sentiment indicator in services, excluding trade, slipped by 1.2 pp to 18.4%, driven by unfavourable expectations about the business situation over the next six months. Although the current service demand is seen as favourable, the outlook for the next three months is more negative.

In the construction sector, there was a 0.4 pp tumble to 31%. The present construction activity is seen as improved, while expectations about the activity over the next three months are more reserved.

Finally, the business climate indicator in industry edged down by 0.3 pp to 17.5%. Industrial entrepreneurs currently report reduced production activity but remain optimistic about the next three months.

The uncertain economic environment and shortage of labour continue to be key issues for industry development, with the negative impact of economic conditions growing in the past month.