Confidence in economy up in most sectors in May

Confidence in Slovakia's economy in May grew almost in all sectors, with the most notable increase observed in services, the Statistics Office reported on Monday. Conversely, businesses in trade and consumers reported a worsening in economic sentiment in the same month. In industry, the mood improved for the third consecutive month, with the seasonally adjusted confidence indicator rising by 3.7 percentage points (p.p.) to 10 in May. The favourable development was mainly due to a rise in orders, especially in the production of cars, as well as a fall in inventories of finished goods. Meanwhile, the economic sentiment indicator in services recorded the most notable month-on-month growth, rising by 16 p.p. to 33 in May, its highest level since June 2011. The consumer sentiment in Slovakia in May was slightly more pessimistic than in April, with the seasonally adjusted indicator falling 1.5 p.p. month-on-month to -24.6. Concerns about the expected financial situation of the respondents' households, as well as the overall economic situation, rose the most. Consumers were also pessimistic when it came to household savings. The mood in business declined slightly compared to April, with the confidence indicator falling by 0.7 p.p. to 29. Negative assessments were made of expected business activities as well as demand from suppliers, in both cases particularly in the sale of motor vehicle parts and accessories and in the repair and maintenance of cars.