BRATISLAVA, April 29, (WEBNOVINY) — The mood in the Slovak industry again slightly improved in April after two months of deterioration. According to results of an economic outlook survey of the Statistics Office, the confidence indicator in industry increased from 4.3 points in March to 6.7 points in April. „Growth of the indicator was affected mainly by the positive development of expected production for the next three months,“ the Statistics Office writes in its comments to the survey results.
There is an upward trend in expected industrial production compared with the previous month, as the balance increased by 2 points to 27 points. This is 9 points above the long-term average. Development was positively influenced mainly by expectations of manufacturers in production of footwear and leather products, manufacturing of machinery and equipment and in metal production. A downward trend is only expected in electrical and optical equipment production sectors.
Expectations concerning aggregate demand compared to March increased by 1 point to negative 8 points, which is 5 points above the long-term average. Nearly four-fifths of respondents share the view that current demand is sufficient. Development is positive in the rubber and plastics manufacturing and chemical industry. Respondents in other industrial sectors mainly expected a drop in demand, most notably in textiles and clothing manufacturing and wood processing.
Expectations of foreign demand worsened compared with the previous month falling by 9 points to negative 12 points. Particularly respondents in coke production and production of refined petroleum products expect lower demand as well as in textiles and clothing manufacturing. Improvement in foreign demand is expected mainly in the manufacturing of rubber and plastics and in chemical industry. More than seven of ten exporters deem current demand as sufficient.
Expectations concerning inventory of finished products improved in April for the fourth consecutive month, and amounted to minus 2 points, increasing by 1 point compared to March. Inventory of products is expected to grow most among respondents from mining and quarrying and wood processing. In contrast, inventory is expected to drop mostly in the chemical industry and in manufacture of rubber and plastic. Eight of ten respondents consider inventory of finished products appropriate.
Outlook for industrial production in the next three months improved compared to March by 7 to 26 points in April. Increased production is expected mainly in wood processing industry, in production of metals and metal products, in the manufacturing of other non-metallic mineral products and in the paper industry. A decline in production is expected in the production of electricity, gas and water and in coke production and production of refined petroleum products.
Outlook concerning prices of industrial products in the next three-month period fell 13 points to 7 points. Respondents expect prices to decline from sector of electrical and optical equipment the manufacturing and producers of transport equipment. Opposite development of prices is foreseen in particular among producers of coke and refined petroleum products, in wood processing and rubber industry.
Respondents expect employment growth in the next three months, outlook increased by 3 to 19 points from previous month. Producers of coke and refined petroleum products and the manufacture of footwear and leather products expect increased number of employees, primarily in the Bratislava region. Job losses are expected especially in the textile industry and food production, particularly in the Presov region.
The industrial confidence indicator remained mostly positive throughout last year, although in the early months it was still negative. Industrial confidence suffered the most significant decline in the crisis year of 2009, when values below minus 20 points were no exception, which were the lowest figures in the history of its measurement since 1997. By contrast, the mood was best in the Slovak industry in 2007, when the indicator exceeded plus 20 points.
SITA
