BCI in the second quarter of 2018 has improved, reaching 39.6 index points, which is an 8.3 index point gain over the previous quarter. The improvement in Business Confidence is in line with the overall positive country performance (Geostat estimated 5.2% GDP growth in Q1 2018). The BCI increase is based on very high expectations and profitable past performance in almost all business sectors. Compared to other sectors, manufacturing assessed their past performance and expectations the most positively. In contrast, the agriculture sector is the most pessimistic, reflecting a low season in production.

The Past Performance Index, which reflects businesses' assessment of their own economic performance in the previous quarter, showed an upward trend, increasing by 6.5 points in Q2 2018.

Business optimism about the overall economy increased significantly, reaching a historical maximum of 67.0 index points. Other than manufacturing, the retail trade and financial sectors have contributed the most to this increase in business optimism.

The Sales Price Expectation Index increased moderately, still standing higher than last year's expectations. Businesses in the construction sector predict high price increases in the next quarter as a result of ongoing regulations in this sector.

Compared to large businesses, SMEs’ expectations and past performance worsened. As a result, the BCI for SMEs went down by 4.5 index points.

Irrespective of their size, the main factors that continue to limit business activities are lack of demand and access to finance.

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