Estonian business confidence improves while consumers turn more pessimistic
Statistics Estonia reports that business confidence edged up in October, while consumer confidence fell sharply to -32.4 points.
Business sentiment in Estonia improved slightly in October, but consumer confidence in the economy dropped sharply, according to monthly survey data from Statistics Estonia, the national statistics agency. The indicators are used as a basis for economic forecasts and for comparisons across Europe.
The consumer confidence indicator fell to -32.4 in October, down from -23.5 in September. People rated both their household's financial situation and the country's overall economic situation more negatively, for the present as well as for the next 12 months. Their expectations for major purchases also worsened.
Business assessments by sector
Trade recorded the highest confidence indicator of all sectors at +23, compared with +21.1 in September. Retailers and wholesalers gave better assessments of sales over the past three months and of expected sales over the next three months, while their view of current stock levels was somewhat more negative.
In services, the indicator rose to +2.7 from +1.2 in September. Firms were considerably more optimistic about expected demand over the next three months, although their assessments of turnover and demand in the past three months declined slightly.
Industry posted +3.5, up from +1.4 in September. Manufacturers took a more positive view of current demand and stocks of finished products, while their expectations for production volume over the next three months stayed at September's level.
Construction was unchanged at -3.8, the lowest of all sectors. As in previous months, construction firms named insufficient demand as the main factor limiting their activity.
Statistics Estonia surveys four business sectors and consumers every month. The next survey round begins on 2 November.
