The economic sentiment in Slovakia deteriorated in December. Compared with the previous month, the seasonally adjusted economic sentiment indicator (ESI) dropped by 5 points to 94,8 and it is the lowest value in the last 9 months.

Confidence fell most sharply in trade and in services, with a slight decrease in industry and among consumers. Confidence in construction remained at the same level. It rose slightly only among consumers. The current value of ESI is significantly more optimistic than in the corresponding period last year (by 9,4 points), but it is still significantly below the long-term average (by 7,7 points).

In December, the confidence indicator in industry decreased by 3,3 percentage points (p. p.) to -3,3 after seasonal adjustment. The indicator´s development was unfavourably influenced mainly by the expected decrease of the production in the next three months. In December, the seasonally adjusted confidence indicator in construction remained at the level of the previous month (-14,5), when the unfavourable evaluation of the overall level of orders was eliminated by the favourable development of the expected employment. The current result is above the long-term average by 9,5 points.

In December 2021, confidence indicator in trade dropped by 12,4 to 15,3. Respondents evaluate the current situation as unfavourable, also due to the tightening of anti-pandemic measures.

In December, the seasonally adjusted confidence indicator in services decreased, its value (7) dropped by 8 p. p. compared with November. The indicator´s development was affected by more negative evaluations of all its three components, while the demand was the most pessimistically evaluated by the respondents.

The consumer mood in Slovakia is gradually deteriorating towards the end of the year. At the beginning of December, it was steadily declining for the fourth consecutive month, and the level reached was the lowest since March this year. The seasonally adjusted indicator of consumer confidence was at the level of -25.9, it dropped by 3 points month-on-month, thus the lag behind the long-term average is slightly deepening.

Respondents were more pessimistic about all the four components of the indicator. Concerns have risen the most in the expectations of the general economic situation and the financial situation of the households. Respondents were slightly more pessimistic about the expectations of household savings as well as the development of unemployment.

Compared to the situation a year ago, when the indicator lagged significantly behind the long-term average, respondents were quite significantly more optimistic (by 6,7 points), but the current result remained below the long-term average (by 6,4 points).