May 29 (SeeNews) - Bulgaria's business climate has improved in all observed sectors in May, compared to the last three months, the National Statitical Institute (NSI) said on Friday.
The overall business sentiment indicator increased by 11.8 percentage points month-on-month in May, as a result of the positive managers’ opinions in industry, construction, retail trade and services, the NSI said in a monthly business climate survey.
In April, the business climate deteriorated across all sectors of the Bulgarian economy, as the countrywide state of emergency imposed on March 13 to limit the spread of coronavirus disease severely impacted businesses. The overall business sentiment indicator dropped by 41.7 percentage points month-on-month in April, NSI said back then.
Bulgaria is currently in a state of epidemic emergency, which replaced the more restrictive state of emergency and is expected to continue until June 14.
The NSI said that the business climate has improved most in the construction sector, by 17.3 pp, due to the optimistic expectations of construction entrepreneurs’ regarding the business situation of the enterprises over the next six months.
"In their opinion, the present construction activity remains reduced, while their forecasts for the next three months are more favourable," NSI said.
The main obstacle for the development of the activity in the construction sector continues to be the uncertain economic environment, according to 70.1% of the enterprise managers surveyed by the NSI.
The retail trade sector followed with an increase of 16.2 pp in May, as retailers’ forecasts about the business situation of the enterprises over the next six months improved together with expectations regarding the volume of sales and orders placed with suppliers. However, the uncertain economic environment remains the main impediment to future development of the sector.
"Concerning the selling prices, the retailers expect them to remain unchanged over the next three months," NSI said.
As regards the manufacturing sector, the business climate indicator there rose by 11.4 pp in May.
According to NSI, the expectations of industrial entrepreneurs about the business situation of the enterprises over the next six months has improved but at the same time, the present production activity is assessed as deteriorated. The forecasts about the activity over the next three months are more positive.
Among the most serious difficulties for the manufacturing sector remain the uncertain economic environment as well as insufficient domestic and foreign demand. Most of the managers expect selling prices to remain unchanged over the next three months, NSI said.
The indicator in the services sector improved the least - by just 2.5 pp. As regards the demand for services, it is assessed as reduced at present, while the managers' expectations for the next three months have slightly improved.