In May, confidence in the Slovak economy deteriorated again,  most significantly among entrepreneurs in the significant industry

Optimism from the previous month was preserved only by entrepreneurs in services. On the contrary, a more pessimistic mood was manifested in industry, trade and construction. Consumers were also skeptical about all four components of the indicator.

After two months of improvement, the economic mood in Slovakia deteriorated slightly again in May. With a month-on-month decrease by 4.5 points, the value of the seasonally adjusted indicator of economic sentiment (ESI) was at the level of 93.9. Compared to last year, the economic mood deteriorated by 15.3 points and it is currently behind the long-term average by 8.1 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).

In May, after seasonal adjustment, the confidence indicator in industry dropped by 13.4 points to -9.7. The development of the indicator was adversely affected by all three indicators, but the most by the expected industrial production. Its decrease is assumed mainly in manufacture of computers, electronic and optical products, transport equipment and wood and paper products. A deterioration in the level of orders (weighted by production) was also noted mainly in manufacture of computers, electronic and optical products, but also in other non-metallic products. Higher finished goods stock in industry are being announced, especially in manufacture of transport equipment and in the chemical industry.

In May, the confidence indicator in services (seasonally adjusted) rose by 7 points to 11 and was thus the highest since June last year. An increase was recorded in the indicators evaluating the last three months - in the business situation, as well as in the demand for services. In the business situation over the last three months, they noted an improvement in art, entertainment and recreation, as well as in accommodation and food services. Higher demand was mainly reported by accommodation and food services and art, entertainment and recreation.

In May compared with April, the consumer confidence in the Slovak economy was slightly more pessimistic. The value of the consumer confidence indicator (seasonally adjusted) decreased by 3 points month-on-month to the level of -24.2. Consumers were more skeptical about all four components of the indicator. They perceived the future development of the general economic situation, the financial situation of their households, but also the development of unemployment and expected savings, more pessimistically.

In May compared with April, the confidence indicator in trade dropped by 7.7 points to a value of 5. Respondents negatively assessed the trend of business activities and expect a decrease in requirements for suppliers. Negative evaluations (weighted by turnover) of the trend of business activities prevailed mainly in retail sale of fuel in specialized stores and in the sale of motor vehicle parts and accessories. They assumed lower requirements for suppliers in retail trade of goods for culture and recreation in specialized stores and in the retail trade of ICT equipment in specialized stores.

The seasonally adjusted confidence indicator in construction (seasonally adjusted) dropped again in May after a significant improvement last month. Compared to the previous month, it decreased by 5.5 points, so the indicator again reached a negative value (the negative ratings of the respondents exceeded the positive), namely -2.5. The overall level of orders, as well as expected employment, were evaluated more unfavourably.