Bulgaria’s Business Confidence Rises in July on Industrial and Construction Gains

Jerusalem, 30 July, 2026 (TPS-IL) -- Sofia (BTA) – Bulgaria’s overall business climate indicator rose by 0.7 points in July 2026 compared with the previous month, reaching 16.8%, driven by improvements in the industrial and construction sectors, while confidence in the services sector declined, according to data released by the National Statistical Institute (NSI) on Thursday.

Labour shortages and the uncertain economic environment remain the main challenges facing businesses in Bulgaria. Most business respondents expect selling prices to remain unchanged over the next three months.

The composite business climate indicator for industry increased by 1.1 points, rising from 16.1% to 17.2%, reflecting manufacturers’ more positive assessment of the current state of their businesses. However, respondents reported that the inflow of new orders had declined over the past three months, while expectations for production activity over the next three months remain pessimistic.

In July, average capacity utilisation fell by 2.4 percentage points compared with April, reaching 72.9%.

The main factors constraining business activity continue to be the uncertain economic environment and labour shortages, although the negative impact of the former eased compared with the previous month.

Regarding selling prices, 81% of industrial managers expect them to remain unchanged over the next three months.

The composite business climate indicator for construction rose by 4.5 points, increasing from 11.1% to 15.6%, supported by more favourable assessments and expectations among construction companies regarding their business conditions.

Respondents expect new orders to increase over the next six months, which they believe will lead to stronger activity in the short term.

The uncertain economic environment, labour shortages and material costs remain the main obstacles to business development. Compared with June, however, the negative impact of both economic uncertainty and material costs declined.

Construction managers also expect selling prices to remain broadly unchanged over the next three months.

The composite business climate indicator for retail trade was broadly unchanged in July, edging down from 27.3% in June to 27.2%.

Retailers reported improved assessments of sales volumes over the past three months and more optimistic expectations for the next three months.

The most significant challenges facing the sector remain the uncertain economic environment, competition and labour shortages.

Compared with the previous month, a larger share of retailers expect selling prices to remain unchanged over the next three months.

The composite business climate indicator for the services sector fell by 2.8 points, declining from 9.8% to 7.0%, mainly due to managers’ more cautious expectations for business conditions over the next six months.

Respondents also expressed weaker views regarding both current and expected demand for services.

The uncertain economic environment and competition remain the main obstacles to business development, cited by 54.4% and 40.3% of businesses respectively.

Managers in the services sector also expect selling prices to remain unchanged over the next three months.