Bratislava, June 28 - The economic sentiment indicator in Slovakia keeps worsening and declined 0,6 p.p. to 96,9 percentage points in June 2008 compared with May, reads the latest report published by Statistical Office of the Slovak Republic. The economic sentiment indicator dropped year-on-year 11,4, and 4,1 percentage points in relation to the long-term average.

In spite of relatively positive trend in June in sectors entering into calculation (except retail trade), the value of three-month moving average was down as a result of negative development in previous period.

The industrial confidence indicator rose 5,6 to 2,3 percentage points in June after three month fall, but it remained over the level of the long-term average by 2,7 points. The development was affected by a considerable rise in expected production over the next three months. The construction confidence indicator increased 5 to minus 2 percentage points; it exceeded the long-term average by 20 percentage points. The development was affected by an increase in demand for construction production as well as by an expected rise in employment. The value of the retail trade confidence indicator slightly decreased (minus 2) in relation to May, what is mostly a result of negative evaluations of the expected business situation. The value of the services confidence indicator rose 4,7 to 24 percentage points in relation to the survey in May, but it is still 20 points over the level of the long-term average. The indicator increased as a result of a positive development of all three indicators influencing its value.

Consumer mood of all four components (expected development of the economy in the SR, estimated unemployment, expectations of savings in households and expected financial situation in households) improved compared with the previous month, at most expected development of the economy in the SR. The consumer confidence indicator rose 7,5 to minus 6,4 points compared with May 2008. Expectations of consumers are more pessimistic (by 7,9 points) in comparison with the corresponding period last year.

(Statistical Office of the Slovak Republic)