Croatia’s economic sentiment index recovers slightly in June

Croatia’s economic sentiment index recovers slightly in June
By Akin Nazli in Belgrade June 29, 2017

Croatia's economic sentiment indicator (ESI) rose slightly by 0.5 points m/m to 115.8 in June from 115.3 in May, according to data released by the European Commission on June 29.

Croatia’s ESI saw its peak point of 119 in March this year, followed a two month decline. The June reading, while up from May, is below April’s 116.4.

 The increase in June was influenced by rising confidence in industry, retail and services. The ESI is composed of indicators for industrial confidence (40%), service confidence (30%), consumer confidence (20%), construction confidence (5%), and retail trade confidence (5%).

The confidence indicator in industry rose to 7.2 points in June from 6.9 in May. Confidence in services rose by 2.4 points to 23.7, whereas consumer confidence worsened by 0.9 points to -18.

The confidence indicator in retail trade rose by a sharp 4.5 points to 13.9 thanks to tourism season, while confidence in construction declined by 2 points from May.

In the European Union, the ESI slightly rose 1.6 points compared to May to 111.3 in June.

Croatia's working-day adjusted industrial output posted an annual decline of 0.6% in April after recording a revised decline of 0.1% in March. Industrial production in Croatia registered annual increases for 25 consecutive months until March. However, problems related to the debt crisis at retail giant Agrokor seem to have started curbing industrial production growth in the last two months.

Croatian salaries have been on an upward trend since July 2016’s bottom point of HRK5,594 supported by changes in personal income taxation legislation, a move which increased consumption. Croatia’s average net monthly wage declined by 2% m/m in nominal terms to HRK5,914 (€797) in April from a record high of HRK6,022 in March.

Croatia's registered unemployment rate declined for the fourth consecutive month to a record low of 11.7% in May from 13.2% in April.

Croatia’s working-day adjusted construction works index increased for the third consecutive month in April, rising by 3.3% y/y.

Croatia's seasonally-adjusted retail sales rose by 2.8% y/y in April, decelerating from a yearly peak 5.7% annual rise in March.

Data

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