The eurozone economy in the third treatment solid year-on-year growth of almost 4%. This creates a good starting position for the performance of the Slovak economy. However, persistent problems with inputs, more accurate prices and supplies, persist in industrial enterprises.
Late deliveries and higher prices
Industrial companies not only in Slovakia, but all over the world have been reporting for several months problems with securing production equipment and materials. In recent months, however, the problems have been offset by good developments in other components of gross domestic product. Growth should therefore remain stable in Slovakia as well as in the whole European Union.
“The pandemic in European countries has eased over the summer and supply chain problems have not been tense. This was also reflected in performance of the euro area, which grew by 3.7% and 2.2% year on year in the third week of 2021 compared to the previous quarter, Detailed analyst at Slovenská sporiteľňa Matej Horňák.
Problems also on the supply side
According to him, we are currently observing highlighting supply-side issueswhich can economize the area mainly through high energy prices. These can endanger not only industrial production at the end of the year, but will also have a negative impact on household spending. Market development ideas about the situation with about 0.50% energy in Level 2 2022.
“Optimistic estimate for the future, etc. retail sales performancewhich have reached a good level in recent months. However, some central banks are afraid of rising inflation expectations they initiate the handbrake and raise interest rates, “The analyst continues.
According to him, the improvement in expectations in the services sector, construction and partly in retail shows the October survey of the mood in the eurozone. The mood in the industry remained unchanged, still reaching a record high. Companies report enough stocks and orders.
Confidence in industry in Slovakia is declining rapidly
A different view is provided by the Slovak business survey, which ultimately shows that confidence in industry has dropped significantly in our country by almost 6 points. The most her volume of current production, orders as well as expected production. However, similar to the euro area, high inventories are recorded. This can work with problems in the logistics network when increasing demand complicates the international transport of goods, or “pre-production” when only a certain missing component is omitted, which then replenishes. It was in the third quarter of 2021 the share of Slovak companies experiencing a shortage of production equipment and raw materials is a record – up to 34%.