June 1, 2022
The economic sentiment improved especially in services, reaching the highest level in the last 11 years, entrepreneurs in construction and industry were also more optimistic in Slovakia. Confidence in trade has deteriorated slightly, as well as among consumers, who have been particularly concerned about the expected financial situation of their households.
The economic sentiment in Slovakia improved month-on-month in May for the third consecutive month. Increased confidence was recorded almost in all sectors, with the largest increase in services for the second consecutive month. On the contrary, the deterioration of the sentiment was reflected in trade, but also among consumers. The sentiment is measured by five sub-indicators expressing the expectations and confidence of entrepreneurs in four sectors (industry, construction, trade and services) and consumers. The sub-indicators range from -100 points (maximum optimistic responses) to +100 points (maximum optimistic responses).
In industry, the sentiment is improving for the third consecutive month, the confidence indicator (seasonally adjusted) rose by 3.7 percentage points (p.p.) in May to 10, which was the highest in the last eleven months. The favorable development of the indicator was influenced mainly by an increase in orders, especially in manufacture of transport equipment, as well as by a decrease in finished goods stock, mainly in manufacture of electrical equipment.
For the second consecutive month, the most significant month-on-month growth was recorded by the confidence indicator in services, which rose by 16 p.p. in May to the level 33.3, which was its highest value since June 2011. The evaluations of all three of its components were more positive, while an improvement of the business situation was expressed by respondent in the majority of services, increased demand was felt mainly in the field of real estates and the demand in the next three months is expected especially in transportation and storage.
In May, the consumer atmosphere in Slovakia was slightly more pessimistic than in the previous month, with the seasonally adjusted consumer confidence indicator dropping by 1.5 points month-on-month to -24.6. Concerns about the expected financial situation of households as well as the general economic situation increased the most. Statements about expected household savings were also slightly more pessimistic. Only the development of unemployment was assumed more favorably.
Compared with the previous month, the confidence in trade decreased slightly, the confidence indicator decreased by 0.7 p.p. to level 29. The evaluations of expected business activities as well as expected requirements for suppliers were negative, in both cases especially in sale of motor vehicle parts and accessories and in repair and maintenance of motor vehicles.
After two months of decrease in May, the seasonally adjusted confidence indicator in construction rose again month-on-month. The increase by 4 points to -9.5 was due to more favorable evaluations of the construction activity as well as the overall level of orders.
Source: Statistical Office of the Slovak Republic
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