August 11, 2023
In July 2023, the total business climate indicator remains to its level from June in Bulgaria (+0.1 percentage points to 26.1%). An increase of the indicator is observed in the retail trade and service sector, while in the industry, a reduction is registered. Only in the construction, the indicator preserves its level from the previous month.
Industry. The composite indicator ‘business climate in industry’ decreases by 0.6 percentage points (reaches 26.3%), which is due to the reserved industrial entrepreneurs’ assessments and expectations about the business situation of the enterprises. In their opinion in the last month, there is slight increase of the production assurance with orders, as the forecasts about the activity over the next 3 months are also favourable
At the same time in July, the average capacity utilization in industry increases (by 0.7 percentage points) in comparison with April and reaches 75.5%.
The uncertain economic environment and shortage of labour are the main obstacles for the activity in the sector, pointed out respectively by 49.4% and 34.7% of the enterprises
Concerning the selling prices in the industry, the managers foresee them to remain unchanged over the next 3 months. Construction. In July, the composite indicator ‘business climate in construction’ remains to its level from June (-0.3 percentage points to 23.1%) (Annex, Figure 6). According construction entrepreneurs’ opinions certain improvement about the present construction activity is registered, which is also accompanied with positive expectations about the activity over the next 3 months. However, the last inquiry reports an increase in the number of the clients with delay in payments.
The production assurance with orders is preserved compared to April and it is assessed to be 6.1 months. The most serious difficulties for the business development continue to be the uncertain economic environment, costs of materials and shortage of labour
As regards the selling prices in construction, the managers’ expectations are for preservation of their level over the next 3 months
Retail trade. The composite indicator ‘business climate in retail trade’ increases by 0.7 percentage points (reaches 36.9%) , which is due to the improved retailers’ assessments about the present business situation of the enterprises. However, their expectations about the volume of sales and orders placed with suppliers over the next 3 months are negative.
The main problems for the activity of the enterprises remain the uncertain economic environment, competition in the branch and shortage of labour, as compared to the previous month strengthen of the negative impact of the second and third factors is observed . The prevailing part of the retailers foresee the selling prices to remain unchanged over the next 3 months
Source: Statistical Office of the Republic of Bulgaria
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