Economic Sentiment Develops Unevenly

The index of current assessments of the overall economy rose by 1.0 points to –0.4 points in December, remaining just below the zero line that separates positive from negative assessments. In manufacturing, the situation index declined (–2.5 points) and was again slightly below the zero line at –9.7 points. In the construction industry, the situation index fell significantly (–6.9 points) and, at –1.3 points, was once again just below the sceptical range. In the service sectors, on the other hand, the situation index rose significantly (+5.0 points) and, at 5.2 points, was higher in the positive range. In the retail sector, there was a slight improvement in the situation index (+0.4 points), which stood at exactly zero at 0.0 points.

The index of business expectations for the overall economy also rose in December (+0.9 points) and, at 0.6 points, was just above zero for the first time since May 2023, which separates negative from positive economic expectations. In the retail sector, the expectations index remained unchanged at –13.6 points, still in the range of sceptical economic expectations. In the service sectors, the expectations index rose (+1.8 points) and was higher in positive territory at 5.4 points. In the construction industry, on the other hand, there was a deterioration (–3.3 points), with the expectations index back closer to zero at 1.5 points. In manufacturing, the expectations index rose slightly in December (+1.5 points), but remained just in the sceptical economic expectations range at –2.0 points.