ESI with a slight improvement in CEE

In September 2024, the Economic Sentiment Indicator (ESI) remained broadly stable in both the EU and the euro area. The development of the ESI in the EU resulted from improved confidence in construction and among consumers, offset by a decrease in industry confidence. Further, the Employment Expectations Indicator (EEI) remained broadly unchanged as well. While the EEI is at or very close to its long-term average of 100, the ESI continues to score below that reference value. When we look at the ESI in the region, the indicator improved slightly in September for the second consecutive month. Such development brought the 3Q24 average of the ESI indicator slightly higher compared to the 2Q24. The change is rather marginal and is driven by improvement of the sentiment in Czechia, Poland and Serbia. In other countries economic sentiment declined. Further, consumer confidence deteriorated marginally in September. All in all, the market sentiment points to rather sluggish recovery in the second half of the year.