Confidence in Slovakia's economy rose after six months in December 2022, but it was one of the lowest this year, reported the Slovak Statistical Office. Optimism was shown by entrepreneurs in services, trade and construction, while the pessimistic mood deepened in industry. The mood of consumers worsened, mainly due to concerns about savings and the future financial situation of households.
Economic sentiment in Slovakia increased by 1.2 points month-on-month in December 2022. Nevertheless, the seasonally adjusted Indicator of Economic Sentiment (IES) at 88.8 points was one of the lowest this year. Compared to the same period last year, the IES value fell by 6 points in December, lagging behind the long-term average by 13.7 points.
The industrial confidence indicator - seasonally adjusted - fell to -15.7 in December, the lowest reading in two and a half years - since May 2020. The month-on-month decline of 0.7 points was mainly influenced by a decrease in orders, especially in the production of computers, electronic and optical products, wood and paper products and other non-metallic products.
The services confidence indicator - seasonally adjusted - rose by 5.3 points month-on-month to 5 in December. Assessments of both demand over the past three months and the business situation improved. Demand for services over the past three months rose the most in real estate activities, with the improvement in the business situation felt most strongly in accommodation and food services.
In trade, the confidence indicator rose by 3.3 points month-on-month to 27. Businesses in trade were positive about the increase in business activity, especially in food, beverages and tobacco retailing, as well as in other goods retailing in specialised stores. The seasonally adjusted confidence indicator for the construction industry increased by 2.5 points to -4 in December from the previous month. The development was positively influenced by more favourable assessments of the overall level of orders, particularly in firms carrying out specialised construction work, as well as more positive assessments of expected employment. Following a recovery in the consumer sentiment in Slovakia in the previous month, it deteriorated again towards the end of the year. The level of the indicator - seasonally adjusted - decreased by 1.9 points to -34.1 compared with the previous month. In particular, concerns about expected savings and the related financial situation of households increased. However, consumers were also more pessimistic about unemployment. The assessment of the overall economic situation was slightly more optimistic.
Source: TASR
