In June, the Slovak consumers felt a slight month-on-month improvement, pessimism prevailed among entrepreneurs

Confidence in the Slovak economy deteriorated month-on-month. There was a significant decrease for the second consecutive month among entrepreneurs in industry. On the contrary, consumers were more optimistic. They evaluated almost all components of the indicator more positively, only concerns about the development of unemployment persisted.

The economic mood in Slovakia deteriorated in June compared to the previous month, the value of the seasonally adjusted indicator of economic sentiment (ESI) dropped by 4 points to the level of 90. Entrepreneurs in industry, trade, services, and construction were more skeptical. On the contrary, after last month's pessimism, consumers showed moderate optimism.

The deterioration of the economic mood also occurred compared to last year, namely by 9.5 points. The indicator's year-long lagging behind the long-term average deepened again in June, currently it is lagging behind by 12 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 June, the confidence indicator in industry after seasonal adjustment dropped by 9 points to -18.7. The development of the indicator was adversely affected by all three indicators, but the most by the expected industrial production, which decreased mainly in manufacture of basic metals and fabricated metal products, transportation and electrical equipment. Deterioration in the level of orders (weighted by production) was noted mainly in manufacture of electrical equipment and machinery and equipment n.e.c.; in turn, increased stocks are being announced mainly in other manufacture, repair and installations.

In June, the confidence indicator in services (seasonally adjusted) dropped by 1.3 points to 9.7. Of the three indicators, a decrease was recorded in two, namely in the indicators related to demand. In both of them, the evaluations of financial and insurance activities decreased, in the demand for the last three months also in other activities, and in the expected demand in transportation and storage.

Slovak consumers showed higher confidence in the Slovak economy in June than in the previous month. The consumer confidence indicator (seasonally adjusted) increased by 1.1 points month-on-month, its level reached -23.1. Consumer optimism increased in three out of the four components of the indicator. They expected mainly the development of their finances to be more favorable, both the creation of savings and the general financial situation of households. They also viewed the future development of the general economic situation more favorably. On the contrary, they perceived the development of unemployment more pessimistically.

In June, the confidence indicator in trade dropped by 4 points compared to May to a value of 2.3. Respondents negatively assessed the increase in stock of goods and expect a decrease in requirements for suppliers. They expected lower requirements for suppliers mainly in specialized retail stores with other household goods and retail stores with ICT equipment.

The confidence indicator in construction (seasonally adjusted) did not change significantly in June compared to the previous month. It decreased by only 1 point to the level of -3.5 due to more unfavorable evaluations of the overall level of orders, mainly in enterprises performing construction of buildings.