Expectations in the Croatian economy improved in May, as confirmed by the latest European Commission survey.

The Economic Sentiment Indicator (ESI) rose to 104.4 points, indicating a recovery after the pessimistic period in March, when the index was at its lowest level since August last year.

The biggest increase was recorded in industry, where the index rose by 1.1 points, thanks to more optimistic production expectations in the coming months. A positive trend is also visible in the construction sector, where the index rose by 0.9 points, and in services, with an increase of 0.7 points. Construction activity accelerated, and service activities are recording better results than in previous months, writes index.hr.

Consumers are also more optimistic, with the index rising by 0.6 points and better forecasts for the financial situation of households over the next year.

On the other hand, retail is recording a decline in optimism, the index fell by 1.5 points, reflecting weaker business performance and increased inventories. A slowdown in employment is also expected, with the EEI index falling by 1.7 points, while the level of uncertainty among managers increased.

At the eurozone and EU level, improvements were also recorded, especially in retail, industry, and among consumers. The ESI index rose by one point in the eurozone and 0.6 points in the EU, while the employment index is also showing a slight increase.

Among the largest eurozone economies, confidence increased the most in Italy, while Germany also recorded growth. France, on the other hand, is recording a deterioration in expectations, and Poland outside the eurozone a slight deterioration.

Source: index.hr