In October 2008 the business inquires of the National Statistical (NSI) showed pronounced symptoms of deterioration of business conjuncture in the country. In the period May - September the value of the total business climate indicator decreased by one percentage point monthly on an average. In October the indicator fell by 4.6 percentage points, which is the biggest monthly decrease in the last two years.

The composite indicator “business climate in industry” decreased by 7.6 percentage points in comparison with the previous month. The decline may be put down to both the lower assessments of the present business situation of industrial enterprises and the lower level managers’ optimism about the business situation over the next 6 months.

In October the industrial capacity utilization was 74.5% and as regards the expected demand over the next 12 months a certain capacity surplus was foreseen. There was a production activity decrease and the prognoses over the next 3 months were in the same direction. According to the managers’ opinions in the last 3 months the competitive position of the enterprises, both on domestic and foreign market was worsen. The uncertain economic environment, the insufficient demand and labor shortage were the main factors, limiting the branch activity in October.

As regards to selling prices 3/4 (75.2%) of managers foresaw they would remain unchanged over the next 3 months.

In October 2008 the more moderate construction entrepreneurs’ forecasts about the business situation in enterprises over the next 6 months send the business climate indicator 5.2 percentage points lower compared to September. At the same time the managers’ expectations were also in direction of maintaining or decreasing the construction activity over the next 3 months.

The competition in the branch, the financial problems, the uncertain economic environment and the shortage of labor remained the main problems of construction enterprises.

An increase of selling prices in the branch over the next 3 months expected by 34.6% of entrepreneurs in construction, whereas 2-3 months earlier their share was 43-44%.

In October the retailers assessed the present business situation as better in comparison with a month ago. However their expectations over the next 6 months were more moderate, as a result of that the composite business climate indicator in retail trade increased only by one percentage points towards September. The last inquiry registered that the sales over the last 3 months were increased and the prognoses over the next 3 months were also optimistic but slightly lower compared to September. The expectations of the managers about the level of orders placed with suppliers from the country over the next 3 months remained favorable.

The factors limiting at a great extend the activity in the branch continued to be the competition in own sector and the insufficient demand. At the same time in the last month the relative share of enterprises indicating the uncertain economic environment as an impediment increased.

As regards the selling prices 42.4% of the retailers expected an increase over the next 3 months.

The composite business climate indicator in service sector decreased by 3.3 percentage points in October 2008 compared to the previous month, which was due to the more moderate managers' assessments about the present business situation in enterprises. The inquiry registered a similar shifting to the more neutral (neither positive, nor negative) opinions also as regards the present and expected demand of services.

There were no expectations for price advance in the sector - over 1/5 of managers foresaw their decrease and 65.6% - preserving their level over the next 3 months.