Bulgarian industrial plants expect to register a rise in investments next year for the first time since 2006, according to a survey of the National Statistical Institute (NSI), carried out in October.

The companies anticipate an annual growth of 18% in allocated investments in 2011, the bulk of which to be parked in utilities.

For the current year, industry representatives forecast a 26% decline in investments, yet more optimistic than the 37% slump expected in 2009.

The lion's share of the funds next year, or a third of the total, is likely to be channelled into the improvement of existing products and the launch of new ones.

Another part will be used for replacing outdated equipment and further funds will be poured into expanding plants' capacities, equalling 25% each of the anticipated investments.

A scanty 14% of the earmarked money will be injected into environmental protection, security and other purposes.

Overall, business sentiment is buoyant, but still the majority of entrepreneurs are cautious in their outlooks on the impact of demand and earnings on their investments in modernisation.