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Confidence in Slovak industry improves in August, economic sentiment hits record low

Sentiment in Slovak industry improved in August following a drop in July. The Slovak Statistics Office (ŠÚ) reported on Tuesday, August 28, that the confidence indicator surged 2 percentage points to negative 4.7 points in the eighth month of 2012. The statistics authority sees the growth in demand for industrial products and the expected production increase in the following months as the main reasons for the improvement.

Sentiment in Slovak industry improved in August following a drop in July. The Slovak Statistics Office (ŠÚ) reported on Tuesday, August 28, that the confidence indicator surged 2 percentage points to negative 4.7 points in the eighth month of 2012. The statistics authority sees the growth in demand for industrial products and the expected production increase in the following months as the main reasons for the improvement.

Industrial production experienced a growing trend in August compared with the previous month, when its outlook increased by 10 to 14 points to four points bellow the long-term average. In particular, respondents in the production of transport means, wood and paper and foods had positive expectations, the SITA newswire quoted the ŠÚ. The statistics office recorded the most considerable drop occurring in the production of computers, electronic and optical products, in addition to machinery and equipment and textile and clothing.

Expected demand for industrial output in August returned to its June level. Compared with July it increased by four points when only respondents in the chemical industry forecast an increased demand. The share of respondents who consider the level of demand sufficient is 79 percent. In foreign demand, the increase is expected only in the supply of electricity, gas and steam and in the chemical industry. Expectations of the development of industrial output for the next three months increased three points from July.

Sentiment in the Slovak economy also declined in August. As ŠÚ informed on Tuesday, the economic sentiment indicator dropped for the third subsequent month and lost 1.3 points in month-on-month terms. It is a 30-month low representing 88.8 points. It was the drop of confidence in the construction, trade and consumer sectors that attributed to the August result. Another factor behind the August figure was the negative development over the previous two periods. The indicator is still lower than in the same period of last year by three points. Its lag behind the long-term average has increased to 8.8 points.

(Source: SITA)
Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

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