The business climate in December was worse for the construction and retail trade and better for the industry and services sectors, according to data from the Bulgarian National Statistics Institute (NSI).

According to the data, the general level of the indicators remains the same as in November. The only growth in December was registered for the industry and it is 0.9 points more on a monthly basis. The reasons for the growth are the more optimistic assessments of the managers for the conditions of the companies.

In the last month of 2010, there was an increase of 1.1 points above the average for production orders. The major problems in the industry continue to be the uncertain economic environment and the insufficient demand.

The assessment for the uncertain economic environment is 21.3 points above the average for the last 10 years. An increase in selling prices is expected in the industry.

However, according to entrepreneurs, the negative impact from the weaknesses in the economic legislation is decreasing.

The index for the construction industry dropped by 3.8 points in December due to the reserved expectations for the next six months.

According to construction companies, in the next three months, the activity will remain at its current level, which is lower, compared to November.

December also registered an increase in the clients with delayed payments. Forecasts for the next three months envision that selling prices in construction will decline.

Expectations for the retail trade sector are also pessimistic. A drop in sales in the next three months is expected, but prices are expected to remain at their current level.

In December, the index in the services sector went up by 2.2 points, due mainly to the improved expectations of managers about the business situation in enterprises in the next six months.

There are also improved expectations for the demand in the sector for the next three months, despite the fact that its current level is assessed as lower than the previous months.

At the same time, managers reported that they have reduced their staff over the last three months. They continue to envision a decline in the selling prices of services in the next three months.