Bulgaria’s Business Climate: Retail and Services Thrive, Industry and Construction Struggle

According to the National Statistical Institute, the overall business climate indicator in March 2024 remains stable compared to February, hovering around 23%. While there was a boost in the indicator within the retail trade and service sector, there was a decline noted in the industry and construction sectors.

The composite indicator for the "business climate in the industry" dips by 0.5 percentage points, sliding from 24.0% to 23.5%. This decline is attributed to pessimistic assessments from industrial entrepreneurs regarding current business conditions.

The primary challenges facing businesses persist, with 45.1% citing the uncertain economic environment and 36.2% noting labor shortages. Regarding pricing in the industry, most managers anticipate stability over the next three months.

In March, the composite indicator for the construction business climate fell by 1.7 percentage points, from 27.2% to 25.5%, reflecting cautious assessments and expectations among construction entrepreneurs regarding business conditions.

In contrast, the retail trade sector has a positive upswing, with its composite indicator climbing by 1.2 percentage points to reach 26.1%. Optimistic assessments and expectations underscore a potential upturn in business conditions. The composite indicator for the retail trade business climate rose by 1.2 percentage points, from 24.9% to 26.1%, driven by optimistic assessments and expectations from retailers regarding enterprise performance.