site.btaTotal Business Climate Indicator Down by 1.7 pp to 19.8% M/M

The total business climate indicator decreased by 1.7 percentage points to reach 19.8% in May 2025 compared to the previous month, according to data released by the National Statistical Institute on Friday. The drop was the result of the more unfavorable business climate in the industry and retail trade.

The biggest challenges to businesses in the country are the uncertain economic environment and shortage of labour.

The composite indicator ‘business climate in industry’ has decreased by 1.1 percentage points from 19.3% to 18.2%. This is due to the reserved industrial entrepreneurs’ assessments of the present business situation of the enterprises.

Construction

In May, the composite indicator ‘business climate in construction’ increased by 1.6 percentage points from 21.7% to 23.3% as a result of the improved construction entrepreneurs’ assessments about the present business situation of the enterprises. The survey registered an increase in the present production assurance with orders, which is accompanied by increased expectations for construction over the next 3 months. In the last month, however, an increase in the number of clients with delays in payments was reported.

Retail

The composite indicator ‘business climate in retail trade’ dropped by 9.7 percentage points from 36.5% to 26.8% due to the more reserved retailers’ assessments and expectations about the business situation of the enterprises. Their forecasts about both the volume of sales and orders placed with suppliers over the next 3 months, however, are more favourable.

Services

In May, the composite indicator ‘business climate in service sector’ increased by 1.7 percentage points from 10.7% to 12.4% as a result of the managers’ positive expectations about the business situation of the enterprises over the next 6 months.

The main obstacle for the business development continues to be the uncertain economic environment, pointed out by 53.6% of the enterprises. In second and third place are the competition in the branch and the shortage of labour with 35.4% and 32.5% respectively.