According to the results of an investment business survey conducted by the National Statistical Institute among manufacturers in the second half of October 2011, Bulgarian businesses active in the industry sector project a 20% annual decline in investments in 2011.

Firms that took part in the survey contribute 90% of the annual turnover of the sector. Businesses expect that the largest share of investments will be channeled into energy and sewerage related sectors (44%), followed by sectors that produce intermediate goods (27.3%) and food (10.9%).

Investments in industry are seen to rise by 17.4% in 2012 as compared to the current year. About 43% of the respondents do not plan to earmark funds for purchases of long term assets in 2012.

Domestic firms project that mechanization and automation of existing production processes, as well as introduction of new production technologies, will attract the largest portion of investments in 2012, 34.6%.

Investments in production capacity are seen to account for 27.9% of the total, while investments in replacement of existing equipment are projected at 24.4%. Nearly 27% of the participants in the survey are reluctant to assess how expectations for production demand and profits could impact investment decisions.

(Sourced from www.sofiaecho.com)