ECONOMIC sentiment in Slovakia continued to improve in June. The three-month moving average of the economic sentiment indicator increased in June by 1.7 points to 100.7 points. Its current value exceeds the level of the same period of last year by 10 points, but it still lags behind the long-term average by 3.8 points, the SITA newswire reported.

“This result reflected the favourable development of confidence in services, but especially the growth of indicators in the previous period,” the Statistics Office said when evaluating June’s results, as reported by SITA.

“It’s positive growth, but this result still isn’t without certain question marks,” Home Credit analyst Michal Kozub told the TASR newswire. He noted that the mood in services has improved significantly, but it has deteriorated in industry and construction.

A key factor for the overall increase was expectations in services, with the trust indicator rising by 3.3 points month-on-month to 23 points. This development was driven by positive evaluations of the business situation and expectations of demand, while current demand was evaluated in negative terms. Confidence in industry and construction fell by 5 and 8 points month-on-month, respectively. It was these two spheres that obstructed overall growth in June.

“The prospects for growth in industry over the next few months have dropped. Although this isn’t expected to be a long-term slump, it’s nonetheless a certain warning that industrial growth isn’t inexhaustible either,” said Kozub, as quoted by TASR.

The mood among Slovak consumers hasn’t changed since May.

“Their expectations for the next few months are almost identical to those in May. In the yearly comparison, however, their position is far better and more optimistic,” added Kozub.

“With relative stability of the indicator of the financial situation of households and expected unemployment in Slovakia, the indicator of perspectives of saving in households fell and in turn the indicator of the expected development of the economic situation in Slovakia increased,” said the Statistics Office, as quoted by SITA. Compared to the same period last year, consumer confidence in June increased by 14 points and exceeded the long-term average.

Source: TASR, SITA

Compiled by Michaela Terenzani from press reports.
The Slovak Spectator cannot vouch for the accuracy of the information
presented in its Flash News postings.