The general business climate index in Bulgaria decreased by 1.9 per cent in August 2007 compared to the previous month, says National Statistical Institute (NSI) survey.

Despite the decrease business climate in Bulgaria remained favourable.

Managers’ expectations concerning the present and future productivity are more optimistic. NSI business inquiries in industry registered increased inflation expectations in August 2007 compared to July 2007.

Business climate in construction remained favourable in August 2007 although it decreased by 2.2 per cent as compared to the previous month. The factor that influences negatively on the sector development is tough competition. Growing number of managers think that uncertain economic environment and labour force shortage are the main factors hindering their companies’ activity.

The composite indicator for business climate in retail remained unchanged in August as compared to July.

Business climate in services sector remained favourable and close to its July level. Managers were more moderate in their prognosis concerning their companies’ status in the next six months and concerning demand for their services.