Business sentiment in Bulgaria edges up for a second consecutive month in Dec.

By bne IntelliNews January 2, 2013
In December 2012 the overall business sentiment in Bulgaria improved slightly by 0.7pps compared to November, the monthly survey of the national statistics institute shows. Main contributors for the improvement were retail trade and the construction sectors. Sentiment in industry and services deteriorated. The overall indicator remains well below its long term average. The uncertain economic environment, largely caused by external factors related to instability in the European Union, remains the main concern for representatives of all sectors surveyed. The retail trade sector registered a marked improvement of 6.4pps largely due to improved perceptions and positive expectations for the business condition of companies. Managers remain conservative in their projection of growth in sales and new orders over the next three months. Sector specific impediments to the activity remain competition concerns and insufficient demand. Business sentiment in construction improved by 3.4pps on expectations of improving firm conditions over the next six months. Sales prices are to stay unchanged, while delayed payments and other financial problems are seen to worsen the business climate. Sentiment in industry slipped slightly on deteriorating expectations for the business activity over the next few months. 43% of respondents identify insufficient demand as the main cause for concern. Given the largely export-oriented nature of the sector, this relates directly to the economic uncertainty in Europe Bulgarias main trading partner. The services sector indicator saw the largest deterioration compared to November. Expectations for decreasing demand over the next quarter and worse perception of the condition of companies drove the sentiment indicator down by 5.9pps. One sector specific factor for the decline is the weakness in the business legislature, which could be related to ongoing debates on law amendments in the tourism sector.

Business sentiment in Bulgaria edges up for a second consecutive month in Dec.

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