In June, the economic mood in Slovakia was the most favorable in the last two years

Entrepreneurs in services recorded the most significant im-provement in mood. There was an optimism also among entrepreneurs in trade and industry. On the contrary, the consumer mood deteriorated again after three favorable months, the respondents perceived negatively, above all, the financial development of their households. Entrepreneurs in construction were also more pessimistic.

In June, the economic mood in Slovakia improved slightly again after the previous month´s deterioration. The economic sentiment indicator (ESI) increased by 3.4 points month-on-month to 107.1. It was the highest value since May 2022. There was an improvement due to more favorable evaluations of three out of the five components of the indicator. Compared to last year, the economic mood was more favourable by 13.2 points, exceeding the long-term average by only a slight 1.1 points.

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).

After seasonal adjustment, the confidence indicator in industry rose by 0.3 points to 4 in June. The development of the indicator was influenced by the decrease in the finished goods stock, especially in manufacture of coke and refined petroleum products and transport equipment. Despite this, the majority of entrepreneurs consider the stock level to be adequate.

In June, the seasonally adjusted confidence indicator in services increased by 12.4 to 13.7 points. A decrease was recorded in all indicators. The business situation improved especially in accommodation and food services. Financial and insurance services reported the highest increase in demand over the last three months, and information and communication are expected to increase in the next three months.

The mood of Slovak consumers slightly deteriorated in June after three months of growth. Compared to the previous month, the consumer confidence indicator (seasonally adjusted) dropped by 2.6 to -10.7. Despite the drop, it remains above the long-term average, currently by 9.5 points.

Consumers evaluated three out of the four components of the indicator more negatively. They were more pessimistic especially when evaluating the financial situation of their households, they expect deteriorated conditions for the creation of savings, as well as a deterioration of the overall financial situation of households. They were also more skeptical when evaluating the expected development of unemployment. Optimism, though only moderate, was preserved only when evaluating the development of the general economic situation.

The trade confidence indicator in June compared with May rose by 4.3 points to 10. Respondents positively evaluated the current trend of business activities and expect an increase in the number of employees, in both cases mainly in retail trade in non-specialized stores.

In June compared with the previous month, the seasonally adjusted indicator of confidence indicator in construction dropped by 3.5 points to -10.5. The decrease was due to more unfavorable evaluations of the overall level of orders, especially in enterprises implementing the construction of buildings, as well as a decrease in expected employment.