NSI: Business Climate Improves in Construction, Service Sectors
Bulgarian entrepreneurs in the construction and services sectors are becoming more optimistic about future prospects, according to monthly data released on Thursday by the National Statistical Institute (NSI).
Their increased confidence has helped to raise the "total business climate indicator" for January by 3,1%, when compared with the previous month of December 2009.
The construction sector composite indicator rose by 9,7% in January, largely due to increased optimism about the business situation over the next six months - a rise of 18,8% in this factor.
Expectations about construction activity over the next three months are also up, by 18,4% in January, and hopes for an extended improvement of new orders over the next six months are improved.
During the next three months, however, constructors expect to continue to shed jobs, but at a reduced rate compared with past months.
Major problems and limitations reported in the sector include shortage of finance and the uncertain economic environment, followed by insufficient demand at present, and a continuing concern about falling selling prices throughout the sector.
The service sector also shows an overall increase in confidence in January, up by 5,9% compared with December. This is largely due to improved assessments of business prospects for the next six months.
The demand for services has decreased over the last three months, along with associated personnel layoffs. But expectations for the next three months are a little more optimistic, in terms of employment.
Competition within the services sector is cited as a factor limiting the activity of the sector, as is the general financial situation. Prices are expected to continue to fall slightly.
The industrial sector overall remains flat, when compared with the previous month. Assessments of present business have worsened, but business managers are more optimistic when considering the next six months. They expect a continued reduction in employment, but with lower rates.
Production activity predictions also remain pessimistic, as are those concerning the competitive situation in the sector, both domestically and in foreign markets. Insufficient demand in both these markets is a continuing concern, and an increase in selling prices is not predicted for the next three months.
The retail goods sector remains static compared to December. The business situation at present is assessed as slightly more favorable, but expectations over the next six months remain pessimistic.
Managers report a drop in sales over the last quarter, and expect the situation to remain unchanged in the short-term. Expectations of new orders also remain flat.
As with the industrial sector, a drop in consumer demand, coupled with the uncertain financial climate, continue to limit activities to a more critical level than in December. Selling prices are predicted to remain at their present levels.
Text source: novinite.com
Image: NSI
To see the presentation of the company, please follow the link:
Presentation of Mirela Real Estate