BRATISLAVA, November 29, (WEBNOVINY) – The sentiment in Slovak industry deteriorated in November following October’s improvement. The confidence indicator in industry slumped 2 points to 0.3 points, according to data of the Statistics Office. The development was influenced by a decrease in demand for industrial production.
Respondents’ evaluation of development of industrial production deteriorated from the previous survey. The indicator went down 4 points from October to 25 points in November, but still remains eight points above the long-term average. The assessment of overall demand for industrial production in November fell seven points. The decline concerns mainly producers of metals and metal products, electronic and optical devices, as well as foodstuffs.
Expectations of foreign demand worsened compared with the previous months by three points. Negative outlook is reported in the production of metals and metal products, production of electrical and optical devices, and foodstuffs. Only wood producers are optimistic about demand on foreign markets. 71 percent of respondents consider current foreign demand as sufficient.
Expectations concerning inventory of finished products did not change from the previous month. Expected inventory growth is in the mining industry, in production of textiles and clothing and in production not classified elsewhere. On the other hand, a decline in inventory is expected in chemical industry, in the production of rubber and plastics products and in wood processing. As much as 87 percent of those polled consider inventory levels appropriate.
Industrial production in the next three months is expected to moderately rise. In particular footwear producers, chemical producers, machine and equipment producers, and electricity, gas and water producers forecast a growth. On the contrary, respondents predict a decline in production in the next three months in production of other non-metal mineral products, in production not classified elsewhere and in production of pulp and paper.
Outlook concerning prices of industrial products in November went up two points to 11 points. Growth in prices is foreseen in the chemical industry, foodstuffs production, and wood processing. On the other hand, producers of electricity, gas and water, as well as producers of electrical and optical devices expect a decline in prices. Regarding employment outlook over the next three months, the indicator rose six points m/m. Producers of footwear and machines and equipment are optimistic regarding employment growth. The opposite outlook comes from producers of coke and refined crude oil products, production of pulp and paper, and electricity, gas and water production.
SITA
