The Economic Sentiment Indicator (ESI) mildly decreased in Croatia in May due to lower confidence in services and retail trade, while indicators for Croatia's expectations in the industry and among consumers were positive.

Croatia’s ESI went down by 0.4 points in May compared to April and now stands at 108.4 points, according to the latest report by the European Commission on the economic sentiment and employment expectations in the European Union and the euro area.

In Croatia, retail trade and services’ confidence indicators fell by 5.8 and 3.2 points respectively.

The confidence indicator in the construction sector remained unchanged in May compared to April.

The confidence among consumers was buoyed, going up 2.7 points and the confidence indicator in the industry rose by 1.3 points.

Croatia’s Employment Expectations Indicator (EEI) also remained unchanged at 112.8 points.

ESI goes down in EU and in eurozone

In May 2023, the Economic Sentiment Indicator (ESI) decreased in both the EU (-1.9 points to 95.2) and the euro area (-2.5 points to 96.5). Also the Employment Expectations Indicator (EEI) declined (EU: -2.2 points to 104.0, euro area: -2.8 points to 104.7), the EC reported.

In the euro area, France showed an improvement in the economic sentiment, while Spain and Germany reported pessimism, with their ESI indicators falling three and 2.9 points respectively.