Bratislava, May 29 - The Statistical Office of the Slovak Republic published its information report of Economic sentiment indicator (ESI) in Slovakia in May 2008.

Following the report, in May 2008, compared to April, the economic sentiment indicator declined 1,6 p. p. to 97,5 percentage points, as a result of negative development of industrial confidence indicator, services confidence indicator and consumer confidence indicator. The economic sentiment indicator dropped year-on-year 10,8 and 3,5 percentage points in relation to the long-term average.

In May, the industrial confidence indicator continued to decrease, it was down 8 to minus 3,3 percentage points and reached below the lowest level from July 2005. This development was influenced by a considerable fall of expected production over the next three months and by a slight rise in stock.

The construction confidence indicator increased 2,5 to minus 7 percentage points; it exceeded the long-term average by 15 percentage points. The development was affected by an increase in the demand for construction production and by expected the employment growth. The value of the retail trade confidence indicator did not almost change (+0,4 p. p.), i.e. a result of favourable development of expected and also unfavourable evaluations of the current business situation under unchanged development of stock.

Services confidence indicator continued in downward trend; its value decreased 2,4 to 19,3 percentage points in comparison with the survey in April. The development was influenced by more negative evaluations of the business situation and the current demand.

Consumer mood was characterised by an increase of the pessimism in Slovakia in the first decade of May. Compared to April 2008, fears of population rose in all the four components (more in expected development of the economy in the SR and in expected financial situation in households and less in estimated unemployment and expectations of savings in households), therefore the consumer confidence indicator (minus 13,9) declined 4,6 point. Pessimism of consumers rose year-on-year 13,9 points.

[The economic sentiment indicator is composed of the industrial confidence indicator (40%), the construction confidence indicator (5%), the retail trade confidence indicator (5%), the services confidence indicator (30%) and the consumer confidence indicator (20%).]

(Statistical Office of the Slovak Republic)