Economic Climate in Croatia Reaches New Highest Level Since EU Accession in September

The economic climate in Croatia reached a new highest level since entering the European Union in September, supported by a significantly improved consumer sentiment, and a notable improvement was also recorded at the European Union level, a survey by the European Commission revealed on Thursday. The Economic Sentiment Index (ESI) in Croatia increased by 1.4 points in September compared to the previous month, reaching a new highest level since EU accession of 121 points, the Commission established.

The economic climate in Croatia at its highest level in 2016.

This marks the fourth consecutive month of value increase and slightly surpassed the previous highest level since EU accession of 120.9 points recorded in December 2015.

In September, consumer expectations improved the most, reflected in a jump of the corresponding index by six points, to minus 18.4 points. A noticeable improvement was also recorded in the services and retail sectors, whose indices rose by 1.1 points and 0.9 points, respectively. Thus, the services sector index reached 25.9 points, while the retail sector index reached 10.6 points.

A slight improvement was also recorded in the construction sector, indicated by an index increase of 0.2 points, to minus 8.3 points. A deterioration was recorded only in the industry, whose index slid by 0.2 points, to 3.3 points, the European Commission’s survey shows.

Economic climate at a record level thanks to optimism in the services and industrial sectors.

Renewed optimism in the EU.

After a setback in August, the economic climate at the European Union level significantly improved in September, with the ESI rising by 1.8 points to 105.6 points.

The most significant improvement in the closing month was in the construction sector, indicated by an index increase of 3.9 points compared to the previous month. Expectations in the industry and retail also improved significantly, with their sub-indices rising by 1.9 and 1.5 points, respectively. Consumer sentiment also improved, reflected in an index increase of 1.3 points.

Sentiment in the services sector also improved in September, with an index increase of 0.7 points.

Among the leading EU economies not in the eurozone, sentiment in Poland improved significantly, with the corresponding index rising by 2.0 points compared to August. The United Kingdom recorded a slight improvement, with the British ESI rising by 0.6 points.

Recovery in the eurozone.

The economic climate in the eurozone also improved in September, after a deterioration in the previous month, with the corresponding index rising by 1.4 points to 104.9 points, according to the European Commission’s monthly survey.

The most significant improvements were in industry expectations, with the corresponding index rising by 2.6 points. Retail sentiment also improved significantly, with its index jumping by 1.6 points. The construction sector also recorded improvements, with an index increase of 0.8 points.

Consumer sentiment also improved, albeit slightly, with an index increase of 0.3 points.

In the services sector, expectations remained mostly at the August level, with an index increase of 0.1 points, the EC survey shows.

Among the leading economies, the Dutch ESI again jumped the most, by 1.7 points, followed by Germany’s, which rose by 1.6 points. France also recorded a significant improvement, with its index rising by 0.9 points, as calculated in Brussels.

A more modest improvement in the economic climate was recorded in Spain and Italy in September, with their indices rising by 0.5 and 0.4 points, respectively.

In a separate report, the European Commission announced that the business climate index (BCI) in the eurozone rose significantly in September, by 0.42 points to plus 0.45 points. The BCI growth is a result of significantly better assessments by managers regarding production in the previous period and the level of total orders.