Stats: Economic Sentiment in Slovakia Worsens in June

Bratislava, 29 June (TASR) - Following two months of improvement, the sentiment among Slovak businesses and consumers worsened in June, with the Economic Sentiment Indicator (ESI) falling by 2.3 points to 97.8, the Statistics Office reported on Monday. The overall figure in June was 1.8 points more optimistic than in the same period of last year. However, it still lags 7.9 points behind the long-term average. Entrepreneurs engaged in industry, trade and construction were more pessimistic, while the sentiment among those engaged in services was more optimistic, similarly as among consumers. After seasonal adjustments, the confidence indicator in industry decreased by 7.3 points to -6.7 in June due to worsening of all of its three components: decrease in output expected in the next three months, growth in stocks of finished products and drop of orders. The seasonally adjusted confidence indicator in services grew by 2.7 points to 9.7, with month-on-month (m-o-m) improvement posted in two of its three components, particularly evaluations of demand and expected demand. Meanwhile, the confidence indicator in trade declined by 3.3 points from May to stand at -1.3. The respondents evaluated negatively a trend in business activities over the past three months, as well as stocks of finished products. Business activities deteriorated particularly among respondents engaged in the retail sale of cultural and recreational goods in specialised stores, as well as in the retail sale of fuel. Meanwhile, expected business activities were evaluated positively. The confidence indicator in construction fell by 3 points to -4.5 in June under the influence of less optimistic evaluations regarding the overall level of orders. Entrepreneurs also expect less favourable developments in employment. Slovak consumers were slightly less pessimistic in June when compared to May, with the seasonally adjusted indicator rising by 1 point m-o-m to -27.3. However, it is still 7.4 points below the long-term average. Consumers were more optimistic in in all the four components of the indicator. They were mainly more optimistic in their evaluations regarding the development of their financial situation, as well as the overall economic situation. They also showed slightly more optimism when it comes to the development of unemployment and their expected savings. ko