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The changes in the business climate index and entrepreneurs' expectations described in the text relate to the historical survey cited by the author. They do not measure the current economic situation and are not forecasts applicable to a new investment.
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In January 2017, the overall business climate indicator in Bulgaria increased by 0.8 percentage points compared with the end of the previous year, when it had stabilised at November's level, according to the National Statistical Institute (NSI) survey. An improved business environment was recorded in industry and services, stagnation in retail trade and deterioration in construction, reports BNR.
The index measuring the business climate in industry increased by 0.9 points in January compared with December, when it had risen by 2.3 percentage points, reflecting industrial entrepreneurs’ optimistic expectations for their companies’ business situation over the next six months. At the same time, it indicates some improvement in their assessments of incoming new orders, accompanied by more favourable expectations for production activity over the next three months.
Average industrial capacity utilisation in January remained at the October 2016 level (74.6%), but the demand expected in the coming months points to a shortage of facilities, the NSI adds. The main obstacle to the sector's development remains the uncertain economic environment, followed by labour shortages; the beginning of the year saw a marked increase in their negative influence.