March 30 (BTA) - Bulgaria's general business climate index dropped by 3.7 points in March 2020 compared with February 2020, which resulted from a worsening business climate in industry, retail trade and services, the National Statistical Institute reported on Monday.

The index component describing the business climate in industry decreased by 5.2 points as a result of industrial entrepreneurs' low estimates and expectations about the condition of their companies. Supply orders to industrial plants became less secure, which led to growing pessimism about business activities and staffing in the next three months.

The perceived insecurity of the economic environment became the most prominent challenge to industrial businesses in March, leaving labour shortage in second place.

Most industrial entrepreneurs expect selling prices in industry to remain unchanged in the next three months.

The index component describing the business climate in the construction sector rose by 1.4 points, which was mainly due to construction entrepreneurs' positive assessments of the current condition of their companies. They see a slight increase in new supply orders received in March, and their expectations about construction activity in the next three months became more optimistic.

Labour shortage in the construction sector had a stronger negative effect than before, with 52.2 per cent of construction entrepreneurs naming it as their main problem. The perceived insecurity of the economic environment and market competition were the second and third most serious difficulties. Selling prices are expected to remain unchanged in the next three months.

The index component describing the business climate in retail trade fell by 6.6 points as a result of retailers' lower assessments and expectations about the condition of their companies. Retailers also became more reserved in their forecasts about sales and supply orders (domestic and international) in the next three months.

Market competition remains the biggest challenge to retailers. The adverse impact of the insecure economic environment increased as well, leaving low demand in third place. Most retailers expect selling prices in their sector to remain unchanged in the next three months.

The index component describing the business climate in the services sector decreased by 3.1 per cent. Current market demand for services is seen as slightly lower than before, but expectations for the next three months are optimistic.

The main challenges in the services sector are market competition, the perceived insecurity of the economic environment, and labour shortage. The adverse impact of low demand increased by 9.1 points. Selling prices in the services sector are expected to remain unchanged in the next three months. RI/VE

/СН/