Bulgaria's business sentiment worsens in Oct

The overall business sentiment indicator decreased by 1.7 percentage points in October compared to September due to an unfavourable business climate in the industry, retail trade and service sector, the statistical office said in a monthly survey.

The composite indicator in the retail sector declined most - by 5.2 percentage points. The drop reflects the unfavourable retailers’ assessments and expectations about the business situation of the enterprises. Their forecasts about the volume of sales and the orders placed with suppliers over the next thee months are also more reserved. The most serious problems for business development continue to be related to the uncertain economic environment, competition and insufficient demand.

In the services sector, the business climate indicator slipped by 2.3 percentage points due to worsened assessment of the present business situation and reserved opinions about the present demand for services. The uncertain economic environment is seen as the factor which is limiting activity most. It is followed by competition and shortage of labour.

The business sentiment indicator in the industry sector fell by 1.3 percentage points, reflecting moderate assessments about the business situation. The forecast about export and production activity over the next three months is reserved as orders inflow fell over the past three months. The uncertain economic environment and shortage of labour are still seen as most serious difficulties for business development.

The business sentiment indicator in the construction sector was the only one to show growth in October, rising by 1.4 percentage points. The improvement reflects favourable assessments about the business situation and improved forecast about the construction activity over the next three months.