The Economic Sentiment Indicator (ESI) in Slovakia rose by 0.8 points in July, on a month-on-month basis, to stand at 96.8, new data from the Statistical Office of the Slovak Republic has found.
Despite this increase, the indicator is still 7.7 points lower than it was a year earlier, and remains 9.2 points below its long-term average.
‘The overall improvement in the indicator’s value was due to more positive evaluations in industry,’ the statistics office said. ‘Entrepreneurs in construction, trade and services, as well as consumers, were slightly more pessimistic compared to the previous month.’
Sector by sector
The confidence indicator for industry increased by 4.3 points to -3, according to seasonally adjusted data, with this improvement linked to higher expected production levels and a decline in inventory. Subsections to report production growth included transport equipment, computers and electronics, and non-metallic mineral products.
In services, however, the indicator declined by 1.3 points to -2, impacted by reduced optimism regarding both current business conditions and future demand. Financial and insurance services, in particular, reported the largest drop in expected demand.
In trade, the indicator also fell, by 1.7 points to 9, with businesses reporting a decline in activity and also in the number of employees. Affected sectors included the repair and maintenance of motor vehicles and the sale of parts for motor vehicles, both of which expect employment to decrease.
In the construction sector, meanwhile, confidence fell by 5 points to -6.5, affected by a ‘more unfavourable’ evaluation of the overall level of orders and expected unemployment. The drop in orders was most apparent in businesses focused on building construction, while companies in specialised construction activities anticipated a decrease in employment.
Consumer confidence
Lastly, consumer confidence in Slovakia fell to its lowest level in two years, according to the data.
The consumer confidence indicator decreased by 1.3 points to -24.1, on a seasonally adjusted basis. This is 4.2 points below the long-term average, with households expressing greater pessimism about future unemployment and their ability to save. However, perceptions about their general financial situation and the wider economic outlook improved slightly. Read more here.
