Bulgaria's business confidence falls as uncertainty and labour shortages loom

June data from the National Statistical Institute show Bulgaria's overall business climate index slipping to 16.1 points, down from 17.4 in May. Companies cite a volatile economic environment, international trade fluctuations and high costs as the chief sources of insecurity, prompting delayed investments and cautious hiring.

Industrial firms express the sharpest pessimism, warning of weaker production outlooks for the coming three months. The construction sector also reports reduced confidence, struggling with a chronic shortage of skilled workers and rising material prices. Retail and services remain comparatively upbeat, with modest sales growth and stable consumer demand.

Despite the gloom, managers do not anticipate significant price hikes in the near term, suggesting that inflationary pressures have yet to intensify. The broader sentiment points to heightened vigilance as businesses await clearer economic signals.