Economic sentiment in Croatia improved in December 2022, buoyed by optimism in the retail sector during the holiday shopping season, the state news platform Hina reported on Monday, citing a publicly available report by the European Commission.

In December 2022, the Economic Sentiment Indicator (ESI) in Croatia was 109.8 points, or 1.5 points up from November 2022. The highest increases were recorded in retail trade and industry, with their indicators increasing by 2.7 points and 2.2 points respectively.

Consumer confidence increased by 1.8 points, while services confidence declined by 0.6 points, and construction confidence fell by 1.2 points. Business leaders expect to increase hiring in the future, as shown by the Employment Expectations Indicator, which was 114.1 points, or 1.5 points up from November. The Economic Uncertainty Indicator declined by two points to 4.9 points.

Economic sentiment improves in EU and euro area

Both business leaders and consumers in the EU and the euro zone were more optimistic in December 2022 than in the previous month, with the ESI rising by 1.5 points in the EU and by 1.8 points in the euro zone. Hina did not report current levels.

“Economic sentiment improved for the second month running, but remained below the long-term average,” Hina quoted the unsigned European Commission report as saying.

The most optimistic in both the EU and the euro zone were managers in the services sector, whose indicator rose by 3.2 points in the EU and by 2.6 points in the euro area. Hina did not report current levels for either.

Retail trade confidence increased by 3.0 points in the EU and by 2.6 points in the euro zone, while consumer confidence rose by 1.7 points in the EU and by 1.4 points in the euro zone.Hina did not report current levels.

Managers in the construction sector were “more reserved” in their expectations as their confidence indicator “increased by not more than one point in both regions.” Business leaders signaled they were not planning on hiring in the months ahead, as the Employment Expectations Indicator fell in the EU by 0.4 points and remained stable in the euro zone. Hina did not report current levels.

“The Economic Uncertainty Indicator declined by one point in both the EU and the euro zone,” Hina said, without offering any interpretation for this decline.

“Among the largest EU economies,” Hina said, “the ESI increased in Germany (+2.0), Spain (+1.9), the Netherlands (+1.5), Italy and Poland (both +0.9), while easing again in France (-1.3).”