Business Confidence Index: financial and construction sectors out of spring vibes!
06 May 2019

BCI in the second quarter of 2019 has improved, reaching 27.0 index points, which is 4.4 index points higher than the previous quarter. The highest growth in BCI was observed in retail trade and manufacturing. In the case of retail trade, this advancement in BCI is mostly due to good past performance, while in manufacturing the driver is positive expectations.

The Past Performance Index, which reflects businesses' assessment of their own economic performance in the previous quarter, showed a downward trend, decreasing by 1.4 points in Q2 2019.

Business optimism increased significantly after a downward trend over the last three consecutive quarters and reached 45.5 index points. Other than manufacturing, retail trade and service have contributed the most to this improvement in business optimism. In construction and the financial sector, expectations have deteriorated significantly.

The Sales Price Expectation Index increased moderately. Businesses in retail trade, service, and agriculture predict higher prices in the next quarter while the other sectors are expecting the same prices as in the previous quarter.

Expectations and Past Performance improved for large businesses and worsened for SMEs.

The main factor that continues to limit business activities for large businesses is access to finance, while for small and medium businesses the limiting factor is lack of demand.