06/28/11 16:02
(http://www.klassa.bg/)

According to NSI data for June, the overall business climate is deteriorating. There is a positive growth only in the service sector.

The overall business climate is deteriorating -in June it declined by 0.4 percentage points month-on-month, while solely the service sector marked an increase of 0.9 index points, according to NSI (National Statistical Institute) data. Experts reported that during this month only the business expectations for the service sector had improved. Managers' forecasts for the next six months are more reserved, whereas some deterioration could be observed in the expectations for demand for services over the next 3 months. In the opinion of entrepreneurs, the employment rate in the sector declined during the last quarter and there is an ongoing downward trend. The precarious economic environment and the competition observed in the branch continue to be the major factors hindering the operation of the sector.

Business climate in the industry slumped by half a percentage point compared to May. The decline was mainly due to the deteriorating expectations about the business situation of companies in the next six months. The latest survey registered an increase of activity, but still no intention for further staff recruitment. Both in the service and industrial sector, the uncertain economic environment was among the main factors hampering the branch operation. Managers experience problems with insufficient demand, but the attitudes of May for a considerable rise in sale prices in the coming months remain unchanged.

After the business climate in the construction sector rose by nearly 4 points in the previous month, in June it retained its level. The NSI data shows that there is a positive tendency for the contraction in activity to stop, while at the same time the expectations for the next three months are somewhat optimistic. Moreover, businesses have also registered lower number of clients with deferred payments.

In the retail trade, the decline in the business climate was the highest (1.7 percentage points) month-on-month due to the unfavorable assessment of the companies on the current business situation of undertakings.
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