The composite business climate index rose 2.8 percentage points in March on month, having steadily trended down for a few months, the National Statistical Institute said on Friday.

Except for a drop registered in industry, the business climate drew higher marks in all sectors - construction, the retail trade and services.

The industrial business climate index dropped for five straight months and was down 2.1 points on February. A larger proportion of entrepreneurs were negative about the current and the expected business situation. Production contracted further and managers expect this tendency to continue in the next three months.

An improvement in the situation in construction was reflected in a 4.3 point rise from February due to the managers' higher marks for the current business situation in companies and their greater optimism for the next six months. Order books are fuller and expectations for the next three months are positive. The latest poll registered fewer customers who fell behind with payments. Construction managers singled out the insecure environment and financial difficulties as the main obstacles.

The composite business climate index for the retail trade climbed 7.9 points from February due to the retailers' greater optimism for the next six months. Although sales volume shrank significantly in the last few months, the drop is not expected to continue in the next quarter.

The business climate index for the service industry climbed 5.8 points from February when it hit the lowest level since polls in this sector began.

Managers were less pessimistic about the present and the expected situation in the next six months. While they said that demand for services declined further, they expect to see an increase in the next quarter. Managers also said they resorted to job cuts, which they expect to continue in the coming months.