BRATISLAVA, February 28, (WEBNOVINY) – Industrial confidence in Slovakia moderately deteriorated in February after improving in the previous month. The industrial confidence indicator in the second month decreased by 4.7 points to 9.3 points, which is moderately bellow the long-term average. Data released by of the Statistics Office show that development of this indicator was mostly influenced by an unfavorable development in demand and higher stock.
Respondents’ evaluation of development of industrial production improved by nine points m/m to 38 points in February, and its level exceeded the long-term average by 20 points. Behind the improvement were evaluations of respondents within production of machinery and equipment and footwear and leather production as well. In particular producers of electrical and optical equipment, as well as wood processors expect a decline in production.
The balance of overall demand in industrial production in February sank by one point. The decline was most significant in production of foodstuffs, drinks, tobacco and in production of other non-metal mineral products. A growth was reported in production of rubber and plastic products. A more moderate increase was registered in production of footwear and leather products, as well as production of transportation means.
As much as 86 percent of respondents considered overall demand as sufficient, or more than sufficient. In foreign demand, the expectations declined by 4 points. The portion of those who consider foreign demand to be sufficient or even more reaches 86 percent, too.
Expectations concerning inventory of finished products went up by 2 points to minus five points in February. Eighty-seven percent of those polled consider the inventory sufficient. Forty-two percent of respondents expect a growth in industrial production in the next three months. The result is worse by 9 points from January, but continues to be above the long-term average.
Outlook concerning prices of industrial products in February went up one point to 23 points. Growth in prices is foreseen in the production of coke, refined crude oil products, production of metals, rubber and plastic products. Prices of electrical and optical equipment, footwear, leather products, and production not classified elsewhere are expected to decline.
With regard to employment, the expectations decreased by 4 points to 16 points. Respondents in the production of coke, refined crude oil products, electricity, gas, water, and mining industry expect staff reductions.
SITA
