BRATISLAVA, July 28, (WEBNOVINY) — Sentiment in the Slovak industry worsened also in July of this year. According to results of an economic outlook survey of the Statistics Office, the confidence indicator in industry shrank 3.7 points to minus nine points over June and hit its low since October 2009. The decrease of the indicator was affected mainly by a decrease in total demand and a growth in inventories.
In July a considerably downward trend in expected industrial production was recorded compared with the previous month, as the balance decreased 21 points to three points, which is 15 points below the long-term average. The development was negatively influenced by producers of electronic and optical equipment, electricity, gas, water, foodstuff and beverages. Mainly producers of transport means, shoemakers and producers of leather products recorded an upturn trend.
Expectations concerning aggregate demand dropped six points from June to minus 21 points, which is eight points below the long-term average. Seventy-four percent of respondents support the opinion that the demand is sufficient or even more than sufficient, said the Statistics Office. Negative trend was recorded mainly with production of electronic and optical devices, production of metals and metal produces, food and beverages ad tobacco processing.
Expectations of foreign demand dropped compared with the previous month by four points to minus 23 points. Only respondents within production of rubber and plastic products and production of footwear and leather products expect growth.
Expectations concerning inventory of finished products improved in July by 10 points to seven points.
Outlook for industrial production in the next three months improved compared to June by five points to one point. Increased production is expected mainly in the areas of metals and metal products, paper and wooden products, and foods, beverages an tobacco processing.
Outlook concerning prices of industrial products in the next three-month period grew nine points to six points. Respondents expect prices to incline among producers of wooden products, metals and metal products and foodstuffs.
Respondents expect employment to drop in the next three months, when outlook decreased five points from the previous month to seven points. Producers of coke and refined petroleum products, and in wooden and paper industries expect lower employment.
SITA
