Czech Republic: Economic sentiment at highest level since the beginning of the pandemic in April
The economic sentiment indicator, published by the Czech Statistical Office (CSO), jumped to 94.7 in April from 87.0 in March, logging the best print since March 2020.
The business confidence index soared in April, coming in at 94.8, from March’s 87.7 reading. The improvement was broad-based, with sentiment strengthening in the industry, trade and selected services sectors. On the other hand, confidence in the construction sector weakened.
Meanwhile, consumer confidence surged in April, with the index rising to 93.9 from 84.0 in March. The increase reflected consumers’ easing concerns regarding unemployment as well as the economic situation over the next 12 months.
Commenting on the release, Jakub Seidler, Czech Republic chief economist at ING, stated:
“Confidence in the economy has been fluctuating in recent months in line with developments in the pandemic and subsequent restrictive measures. Given the gradual vaccination of the population, the improvement of the pandemic situation and expectations for a gradual loosening of restrictive measures (shops reopening planned on 3 May), the improvement in April confidence is understandable. In this respect, today’s numbers from the domestic economy have a positive effect, but the growth in confidence is driven mainly by expectations, which may not be met in the coming months to the extent that companies and households now hope.”