The confidence of the Slovak entrepreneurs and consumers was the lowest in the last eight months

Only entrepreneurs in industry were more pessimistic, but the drops were significant and overshadowed the optimism of entrepreneurs in construction, trade and services. The mood among consumers also slightly deteriorated, they perceive the development of the general economic situation more negatively, but they also expressed concerns about the deterioration of the creation of savings.

The mood in the Slovak economy deteriorated again in September compared to last month. The economic sentiment indicator (ESI) dropped by 2.1 points to 102.3, the lowest since January of this year. Evaluations deteriorated in only two of the five components of the indicator, i.e. among entrepreneurs in industry and among consumers. Entrepreneurs in construction, trade and services were slightly more optimistic.

Compared to last year, the economic mood was more optimistic by 6.4 points, lagging behind the long-term average by 3.7 points.

The 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 dropped by 5.3 points to -1.3 in September, which represents the lowest value since March 2024. The development of the indicator was influenced by all three indicators, such as orders, goods stock and expected production. They noted a deterioration in the level of orders (weighted by production) mainly in manufacture of transport equipment and wood and paper products, increased stocks are announced mainly in manufacture of machinery and equipment n.e.c., and they expect a decrease in production mainly in manufacture of coke and refined petroleum products.

In September, the seasonally adjusted indicator of confidence in services increased by 0.3 points to 6. The growth was recorded by the business situation and demand over the last three months. The business situation improved in financial and insurance services, demand increased in information and communication.

Among consumers, confidence in the development of the Slovak economy dropped for the second consecutive month. The consumer confidence indicator (seasonally adjusted) decreased in September compared to August by 0.4 points to -11.9. However, it continues to exceed the long-term average, currently by 8.3 points. Consumers evaluated two of the four components of the indicator more negatively. They perceive the development of the general economic situation more pessimistically, but they also expressed concern when evaluating the expected savings. They see the development of unemployment more optimistically, and statements evaluating the overall financial situation also slightly improved.

In September, the confidence indicator in trade rose by 1.3 points to 8, compared to August. Respondents positively evaluated the increase in the number of employees and expect higher requirements for suppliers, in both cases mainly in the retail trade of other household goods in specialized stores.

In September, compared to the previous month, the seasonally adjusted confidence indicator in construction rose by 1.5 points to -8.5 due to more favorable evaluations of the overall level of orders.