Mood among Slovak entrepreneurs slightly worsened in July

The mood among Slovak businesses and consumers deteriorated slightly in July, with the Economic Sentiment Indicator (ESI) falling by 2.6 points month-on-month to 104.5, the Statistics Office reported.

In yearly terms, the indicator improved by 10.2 points to stand only 0.9 points behind the long-term average.

Consumers expect more favourable developments in their household finances as well as in unemployment. Businesses were more cautious, with a deterioration in sentiment in services, trade and, for the first time in four months, in industry. Only entrepreneurs in the construction sector were more optimistic.

The industrial confidence indicator fell by 1.7 points to 2.3 in July. This was mainly influenced by a decline in expected output for the next three months, especially in the chemicals industry, other manufacturing, repairs and installation and food production.

The services confidence indicator fell by 6.7 points to 7. Assessments of the business situation deteriorated, in particular in hotel and catering services, but also when it came to demand in the past three months, mainly in the information and communications sector.

The atmosphere among Slovak consumers improved slightly following the previous month's deterioration. The consumer confidence indicator increased by 1.1 points month-on-month to -9.6. The current value exceeds the long-term average by 10.6 points.

Consumers were more optimistic when it came to three of the four components of the indicator. In particular, they expected their household finances to develop more favourably. They were particularly optimistic about their expected savings, but also in their assessments of their overall financial situation. At the same time, they believed in more positive developments in unemployment. They were pessimistic when assessing the development of the overall economic situation.

The trade confidence indicator fell by 4 points month-on-month to 6. The respondents were pessimistic about the current trend in business activity and expected a decline in the number of employees. Negative assessments of business activity were particularly prevalent in the retail trade in household goods in specialised stores and in the repair and maintenance of cars. Staff reductions are planned mainly in retail outlets specialising in motor fuels.

The construction confidence indicator rose by 2 points month-on-month to -8.5, mainly due to more favourable assessments of expected employment, which can be attributed to the impact of engineering construction companies.

(TASR)