In August 2023, economic sentiment in Croatia deteriorated, reflecting a wave of pessimism in the services sector at the peak of the tourist season and increased uncertainty, a European Commission report showed on Wednesday.

In August 2023, the Economic Sentiment Indicator (ESI) in Croatia fell 2.8 points on the month, to 102.4.

Services confidence deteriorated the most, by 7.6 points. Industry confidence fell by 3.1 points, construction confidence by 2.4 points, and consumer confidence by 1.3 points. Only retail confidence increased, by 2.4 points.

The Employment Expectations Indicator (EEI) fell 0.6 points, while the Economic Uncertainty Indicator (EUI) increased 6.1 points.

In August 2023, the ESI continued to decline in both the EU (-0.6 points to 92.9) and the euro area (-1.2 points to 93.3). The EEI declined further (-1.0 point to 101.7 in the EU and -1.3 points to 102.1 in the euro area).

In the euro area, industry confidence fell by 1.0 point and services confidence by 1.5 points. In the EU, industry confidence fell by 0.3 points and services confidence by 0.8%.

Consumer confidence fell by 0.9 points in both areas while retail confidence fell by 0.5 points.

The EUI fell by 1.0 point in the euro area and by 1.3 points in the EU.