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Photograph: Photo by PredragKezic, used under CC0

Economic sentiment in Croatia in August 2016 reached the highest level this year, on the back of markedly improved confidence in the services sector, a European Commission monthly survey showed on Tuesday.

The Economic Sentiment Indicator (ESI) for Croatia increased by 1.3 points in August compared with July, reaching this year's highest level of 119.6 points.

The greatest improvement was recorded in the services sector, where confidence jumped from 6.7 points to 24.8 points. A marked improvement was also observed in construction, where confidence rose by 2.4 points to -8.5 points. Industry confidence improved by one point to 3.5 points.

Retail trade confidence stagnated at 9.7 points compared with 10.0 points in July. A marked decrease was recorded in consumer confidence, which fell by 1.3 points to -24.4 points.

In the 28-member European Union, economic sentiment decreased slightly, sliding by 0.9 points to 103.8 points. The largest decreases were recorded in construction and industry, where confidence decreased by 2.5 and 1.6 points respectively. Consumer confidence stabilised after a plunge in the previous month.

In the 19-member euro area, economic sentiment also decreased, by one point to 103.5 points. Retail trade confidence shrank by 2.7 points, industry confidence by 1.8 points and services confidence by 1.2 points. Construction confidence remained at last month's level.

The ESI declined in four of the five largest euro-area economies, namely in the Netherlands (-3.6), Italy (-2.1), Spain (-1.5) and Germany (-1.1), while it booked an increase in France (+0.8).

In a separate report, the Commission said that the Business Climate Indicator (BCI) for the euro area decreased markedly in August (by 0.36 points to +0.02). The decrease is the result of a marked deterioration in managers' assessments of past production and the level of overall and export order books.

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