Business confidence improves as consumers grow more pessimistic

Business confidence improved in October, while consumer confidence fell sharply, ERR reported, citing data from Statistics Estonia. Confidence rose slightly in retail, services and industry, remained unchanged in construction and declined among consumers.

Retail continued to have the highest business confidence indicator, at 23, up from 21.1 in September. Retailers gave better assessments of sales over the past three months and their sales outlook for the next three months, while their assessment of current stock levels weakened slightly.

The services confidence indicator rose to 2.7 from 1.2. Service companies were much more positive about demand over the next three months, although their assessments of recent sales and demand edged down. Industrial confidence increased to 3.5 from 1.4, with companies reporting improved current demand and finished-goods stocks. Their outlook for production over the next three months was unchanged.

Construction confidence held at minus 3.8, the lowest level among the sectors. Companies in the sector continued to identify insufficient demand as their main constraint.

Consumer confidence fell to minus 32.4 from minus 23.5 in September. Consumers’ assessments of their household finances and the national economy, both at present and over the next 12 months, worsened, as did their expectations for purchases of durable goods.

The surveys measure confidence among businesses in four sectors and among consumers. The resulting indicators are used, among other purposes, for economic forecasts and comparisons across Europe.