Bulgaria’s Oct Business Sentiment Index Posts Biggest Drop in Two Years

The industry sub-index for October fell 7.6 points, after rising 1.8 points in September, as managers felt less upbeat about the current conditions and the outlook for the next six months, NSI said.

Capacity utilisation was reported at 74.5% with industrial managers pessimistic about orders in the next 12 months.

Weak domestic demand, the uncertain global environment and a labor shortage are dampening the optimism of industrial managers who expect prices in the sector to remain unchanged in the next quarter.

In October, the construction sub-index lost a further 5.2 points after falling 4.9 points last month, with managers negative on the six-month outlook as business  activity over the next three months is forecast to remain unchanged.

Overall, 34.6% of construction company managers said they expect prices in the sector to increase, compared to around 44% during the summer, as they face problems similar to those in the industrial sector.

The sub-index in the retail sector rose by one percentage point in October after losing 3.1 points the previous month, as managers were positive on the current and the short-term outlook for the sector and their order books, but were moderately optimistic about the six-month prospects.

Overall 42.4% of retail managers expect a surge in prices in the next three months.

The index measuring the business climate in the services sector was down by 3.3 points after adding three points in September. Most managers were neutral, neither positive or negative, on how conditions in the sector will develop in the next three to six months. Prices will likely remain largely unchanged.