January 11, 2023
Confidence in the Slovak economy increased slightly month-on-month after six months of decline in December, although it was among the lowest this year. Mood improved in the majority of sectors, it dropped in industry and among consumers.
Among entrepreneurs, those in services, trade and construction showed optimism, on the contrary, pessimism deepened in industry. After improving last month, consumer confidence dropped again.
Economic mood is measured by five sub-indicators, which express the expectations and confidence of entrepreneurs in four sectors (industry, construction, trade and services) and consumers. Partial indicators range from -100 points (maximum pessimistic answers) to +100 points (maximum optimistic answers).
The confidence indicator in industry (seasonally adjusted) dropped to -15.7 in December, which is the lowest value in the last two and a half years (since May 2020). The month-on-month decrease by 0.7 points was mainly influenced by the decrease in orders (weighted by production), especially in manufacture of computers, electronic and optical products, wood and paper products and other non-metallic products.
The confidence indicator in services (seasonally adjusted) increased by 5.3 points month-on-month to a value of 5 in December. Evaluations of demand for the last three months, as well as of the business situation, improved. The demand for services over the last three months increased the most in real estate activities, the improvement of the business situation was felt most significantly in accommodation and food services.
After the revival of the consumer atmosphere in Slovakia in the previous month, it deteriorated again at the end of the year. The level of the consumer confidence indicator (seasonally adjusted) decreased by 1.9 points compared to the previous month to -34.1. Of the four components of the indicator, the respondents evaluated three of them more pessimistically than last month. In particular, concerns about the expected savings and the related financial situation of households have increased. However, they also perceived the development of unemployment more pessimistically. They perceived the development of the overall economic situation as slightly more optimistic.
Confidence indicator in trade increased by 3.3 points month-on-month to a value of 27. Respondents positively assessed the increase in business activities (weighted by turnover), especially in retail trade of food, beverages and tobacco and in the retail trade of other goods in specialized stores.
In December, the seasonally adjusted confidence indicator in construction increased by 2.5 points compared to the previous month to the level of -4. The positive development was a result of more favorable evaluations of the overall level of orders, especially of enterprises performing specialized construction works, as well as more positive evaluations of the expected employment.
Source: Statistical Office of the Slovak Republic
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