Costs of productions in Bulgaria have increased in June, but have decreased on annual basis for the fourth month in a row, announced National Statistic Institute of Bulgaria.
The general index of production has increased by 1% in June compared to the month before. The production costs in the processing industry have increased by 1.4% and by 1% in the mining industry while the costs in manufacture and electrification have slightly decreased by 0,1%
The processing industry marks a decrease on a year-to-year basis of 4.3%, the mining industry – 1%, and electrification and gas distribution about 0.5%.
In May, the general production index has increased by 0.4% in comparison to June but has decreased on an annual basis by 0.9%.
Iskra.bg reported earlier this year about alarmingly fast dropping prices in the US caused by shrinking demand amidst the coronavirus pandemic. Such a scenario may lead to low market prices that are unable to cover the production expenses of the manufacturers.
This may lead to a further reduction in production and staff release throwing the economy into a downwards spire of shrinking demand, supply, and lost workplaces.
