The business climate improves slightly in November
In November, the overall business climate indicator increased slightly by 0.9 percentage points, compared to its October level, according to the National Statistical Institute (NSI). A better business climate was registered in the industry and service sectors, while construction and retail trade suffered a worsening economic situation.
The business climate index in the industry sector increased by 3.5 percentage points, compared to the previous month, mainly due to managers' more favorable estimates of the business state of enterprises in the next six months. The survey registered some improvement in the production activity, with orders from abroad, which is accompanied by increased expectations about the activity in the next three months. The main factors limiting the development of businesses in the sector are still the uncertain economic environment and the insufficient domestic demand, as their negative impact increased last month.
The business climate index in the construction sector, however, fell by 5.3 percentage points. This fact is due to managers' growing pessimism in their assessments and expectations about the business state of enterprises. There is also a downward trend in expectations in terms of employment in the sector. The main factors limiting the activity in the sector are still the uncertain economic environment, as well as financial problems. These have been pointed out by 74% and 51% of surveyed executives, respectively. On the other hand, expectations of construction developers about selling prices of their products are that they will remain unchanged over the next three months.
With the oncoming Christmas shopping season, the business climate index in retail trade fell by 1.2 percentage points, compared to October. Managers' assessments and expectations about the business state of enterprises in the industry are worsening. However, retailers expressed optimism in their forecasts for sales volumes and orders to suppliers for the next three months.
The uncertain economic environment continues to be the most significant factor limiting the activity of enterprises. Last month, the negative impact of the ‘competition in the sector’ and ‘demand in the sector’ factors has decreased by 8.2 percentage points and 10.5 percentage points, respectively. At the same time, managers' expectations about selling prices in the sector are that they will increase a little over the next three months.
Recently, the service sector has become a little more optimistic. Therefore, the business climate index in the service sector rose by 3.6 percentage points, compared to the previous month.
Source: klassa.bg