December 30 (BTA) - The general business climate index grew by 2.6 points in December 2021 compared with November 2021, the National Statistical Institute reported on Thursday.

The index rose in the sectors of construction, retail trade, and services. A decline was registered in industry.

The index component describing the business climate in industry went down by 0.7 points in December 2021 compared with November 2021. Industrial entrepreneurs' assessments of the current condition of their companies have worsened, and their expectations for the next six months have become more reserved. At the same time, the poll shows a slight drop in the intensity of supply orders. Uncertainties in the economic environment and a labour shortage remain the main problems to business development in industry.

The index component describing the business climate in construction rose by 3.3 points as a result of higher assessments and expectations of construction entrepreneurs concerning the business condition of their enterprises. According to them, the intensity of supply orders in the sector have remained basically unchanged, and forecasts about construction activity in the next three months have become more moderate.

The most serious difficulties in business activity stem from the uncertainties in the economic environment, the prices of materials and the shortage of labour, identified, respectively, by 63.6 per cent, 50.3 per cent and 40 per cent of enterprises. Some 34.2 per cent of construction entrepreneurs expect selling prices in the construction industry to rise in the next three months.

The index component describing the business climate in retail trade went up by 4.9 per cent as a result of higher assessments and expectations of retailers about the condition of their companies. Their forecasts concerning the sales volume and supply orders in the next three months are positive as well. The uncertainties in the economic environment remain the main hurdle to business development in retail trade, but their adverse effect has decreased over the last month. Second and third are insufficient demand and market competition in the sector. Retailers' assessments about selling prices over the last month got more positive, with 29.9 per cent of entrepreneurs expecting them to rise further in the next three months.

The index component describing the business climate in services went up by 5.9 per cent as a result of optimistic assessments and expectations concerning the business condition of enterprises. Business people are also more optimistic about the demand for services. The uncertainties in the business environment and competition in the sector are the main factors limiting the activity of the companies. Entrepreneurs expect selling prices in the services sector to increase in the next three months. MT/VE

Source: Sofia