2010.08.2704:13:00UTC+00Slovak Economic Sentiment Rises Further In August

Slovak economic sentiment continued to improve in August largely due to an increase in confidence in the retail trade sector.

The economic sentiment indicator rose to 93.6 from 92.5 in July, the Statistical Office of the Slovak Republic said Friday. The index is still lower than the long-term average by 4.8 percentage points, the agency said.

Among the components, retail trade confidence indicator jumped to 3.7 from minus 1.7 in the previous month. Construction confidence indicator remained unchanged at minus 45.

Meanwhile, the indicator for industrial confidence dropped to 0.7 from 7. The gauge for services confidence declined to 21.3 from 22. Consumer confidence dipped to minus 21.8 from minus 17.8, falling for a second month in a row. Consumer mood has deteriorated in Slovakia as a result of a rising fears that unemployment will increase, deteriorated financial situation in households and also deteriorated economic development in the state, the agency said.

The Slovak economy grew at a slightly slower pace in the second quarter. Gross domestic product grew an unadjusted 4.6% year-on-year at constant prices during the second quarter, preliminary data showed. In the first quarter, the economy grew for the first time since the final three months of 2008, with an expansion of 4.8%. The Slovak central bank expects the economy to expand 3.7% this year and 4.3% in 2011.

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