Business confidence improves, but Estonian consumers turn more pessimistic
Consumer confidence in Estonia fell sharply in October to -32.4 from -23.5 in September, even as business confidence improved slightly, Statistics Estonia reported.
Trade confidence was highest at +23, services +2.7 and industry +3.5, all up on September. Construction stayed at -3.8, with firms citing insufficient demand as the main limit, the agency reported.
In October, the confidence indicator was still highest in trade (+23, up from +21.1 in September). Compared with the previous month, trade enterprises' assessments of sales in the last three months and expected sales in the next three months improved, while their assessment of the current volume of stock was somewhat more negative.
The confidence indicator for the services sector was +2.7 (+1.2 in September). Service enterprises were considerably more optimistic about expected demand in the next three months, but their assessments of turnover and demand in the last three months declined slightly. The industrial confidence indicator was +3.5 in October (+1.4 in September). Industrial enterprises took a more positive view of current demand and stocks of finished products, while their assessment of expected production volume in the next three months remained at September's level.
The construction sector's confidence indicator was unchanged from September at -3.8, and remains the lowest of all sectors. As in previous months, construction enterprises cited insufficient demand as the main factor limiting their activity.
The consumer confidence indicator was -32.4 in October, significantly lower than in September (-23.5). Consumers' assessments of their household's financial situation and the country's general economic situation deteriorated, both currently and for the next 12 months, as did their forecast for major purchases.
The business and consumer surveys measure economic confidence across four business sectors and among private consumers. A confidence indicator is calculated for each sector based on the responses, and is used as a basis for economic forecasts and Europe-wide comparisons.
Statistics Estonia surveys four sectors and consumers monthly; the indicators feed forecasting and international comparisons. The next round begins on 2 November.
More detailed information is available from Statistics Estonia here, here and here.
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Editor: Andrew Whyte
