National statisctical institute reports improvement of the business climate in Bulgaria

In November 2022, the overall indicator of the business climate rose by 3.5 percentage points compared to the previous month, with growth in the indicator registered in all monitored sectors - industry, construction, retail trade and services, National Statistical Institute (NSI) reported after conducting surveys among representatives of the main economic activities in the country.

Industry

The composite indicator "business climate in industry" increased by 0.8 percentage points due to more favourable assessments and expectations of industrial entrepreneurs about the business situation of enterprises. Their outlook for manufacturing activity over the next three months also improved.

The uncertain economic environment and labour shortages remain the main constraints on the activity of enterprises, although a decrease in their negative impact has been recorded over the past month.

Managers' expectations for selling prices in industry over the next three months are upwards.

Construction

In November, the composite indicator "business climate in construction" increased by 2.2 points. Construction contractors' assessments of the current business situation are improving and their expectations for the next six months are also favourable. At the same time, the survey also recorded some increase in new orders received over the past month.

The most serious problems for business development continue to be the uncertain economic environment, material prices and labour shortages.

In terms of selling prices in construction, 49.4% of managers anticipate that they will increase over the next three months.

Retail

The composite indicator "business climate in retail trade" increased by 8.7 points due to retailers' optimistic assessments and expectations about the business situation of enterprises. Their forecasts for sales volumes and orders to suppliers over the next three months also improved.

The uncertain economic environment, competition in the industry and insufficient demand remain the main factors constraining activity in the sector, with their negative impact intensifying over the past month.

Retailers' assessments of selling prices over the past month are trending upwards, with 31.3% of managers anticipating that they will continue to rise over the next three months.

Services

In November, the composite indicator "business climate in the services sector" increased by 5.3 percentage points as a result of managers' favourable assessments and expectations of the business situation of enterprises. Their views on current and expected demand for services are also positive.

The most serious difficulties for businesses continue to be related to the uncertain economic environment, labour shortages and competition in the industry.

In terms of selling prices in the services sector, managers forecast some increase over the next three months.