NSI: Total Business Climate Indicator Increases by 3.2% in May 2017

In May 2017, the total business climate indicator increases by 3.2% in comparison with April as growth of the indicator is registered in all observed sectors - industry, construction, retail trade and services, according to the National Statistical Institute.

The composite indicator ‘business climate in industry’ increases by 1.3% compared to the previous month mainly due to the optimistic industrial entrepreneurs’ expectations about the business situation of the enterprises over the next 6 months.

At the same time, the present production activity is assessed as slight improved, while their forecasts over the next 3 months are more reserved.  The main factor limiting the activity remains the uncertain economic environment, followed by the shortage of labour.

According to data in May, the composite indicator ‘business climate in construction’ increases by 2.9%, which is due to the more favorable construction entrepreneurs’ assessments and expectations about the business situation of the enterprises.

Their opinions about the present construction activity, as well as their expectations for the activity over the next 3 month are more optimistic. However, the last inquiry reports an increase in the number of the clients with delay in payments. The uncertain economic environment, competition in the branch and shortage of labor continue to be the main problems for the business development. As regards the selling prices in construction, the managers’ expectations are for them to remain unchanged over the next 3 months.

The composite indicator ‘business climate in retail trade’ increases by 5.6% as a result of the improved retailers’ assessments and expectations about the business situation of the enterprises.

In May, the composite indicator ‘business climate in services sector’ increases by 4.7%, which is due to the improved managers’ assessments and expectations about the business situation of enterprises. Their opinions about the present and expected demand for services are also more favorable. The most serious difficulties for the activity in the sector continue to be the competition in the branch and uncertain economic environment, although in the last month a decrease of the negative impact of the second factor is observed.

Concerning the selling prices the managers’ expectations are for them to remain unchanged over the next 3 months.