Improvement of the business climate in Bulgaria in November – Business
In November 2022, the economic situation in the country improved sharply, erasing the deterioration in October, with a more favorable business climate being reported in all observed sectors – in industry, retail, construction and services.
This shows the results of the latest survey of the National Statistical Institute (NSI).
The overall business climate index rose 3.7 points in November from a 1.7 point drop in October, with the economic sentiment index nearing its long-term average.
Graph of the general business climate index
The index measuring the business climate in industry rose 0.8% in November after falling 1.3 points a month earlier, with the latest NSI survey reporting more favorable assessments and expectations of industrial entrepreneurs about the business impacts of their enterprises. Their forecasts for manufacturing activity over the next three months are also improving.
The main factors impeding the development of this industry continue to be related to the uncertain economic environment and labor shortages, but November saw a reduction in their negative impact.
Managers’ expectations regarding sales prices in industry in the next three months are in the direction of increase, NSI points out.
In November 2022, the construction business climate indicator rose 2.2 points after rising 1.4 in October, as construction contractors’ assessments of their enterprises’ overall business expectations improved, as did their expectations for construction activity in the next three months. The latest search for builders in NSI also registered a certain increase in new orders received in November.
The main problem for the development of the activity in the industry is the uncertain economic environment, followed by the prices of materials and the shortage of labor.
49.4% of construction managers foresee a decrease in sales prices in the next three months.
A composite retail business climate index jumped as much as 8.7 points in November, offsetting a 5.2-point drop in October, as the sharp improvement extended to upbeat estimates and retailers’ expectations of business for businesses. Forecast them on the volume of sales and orders to suppliers for the next three months are also accompanied, read the NSI business survey.
According to retailers, the main obstacle to improving activity in the sector is related to the uncertain economic environment, followed by competition in the sector and insufficient demand, with November seeing an increase in their negative impact.
The service sector business climate composite also rose solidly in November to 5.3 points after falling 2.3 points a month earlier, with the improvement driven by favorable ratings and managers’ expectations for points and of what is expected in your search for services.
The uncertain economic environment continues to limit business development in this sector to the greatest extent, followed by the “labor shortage” and “competition in flour” factors.
Regarding sales prices in the services sector, managers’ forecasts are for some increase in the next three months.
The improvement of the economic situation in our country in November is a fact that there are probably no indications of the formation of a regular caretaker government within the framework of the new parliament, and yet the negative effect related to the war in Ukraine remains in force – especially the still high energy prices and inflation.
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