Czech Republic: Economic sentiment bounces back fractionally as Covid-19 containment measures are gradually lifted
The economic sentiment indicator, published by the Czech Statistical Office (CSO), bounced back marginally in May from its unprecedented monthly drop in April due to the harsh blow dealt by Covid-19, coming in at 75.1 (April: 74.8).
The business confidence index fell for the fifth consecutive month in May to 71.6 (April: 73.8), reflecting a broad-based decline in sentiment across the surveyed sectors, with services taking the strongest hit. Notably, sentiment in the all-important industrial sector turned slightly less pessimistic, however.
In contrast, consumer confidence strengthened somewhat as lockdown measures started to be eased, with the consumer confidence index jumping from a near eight-year low of 80.1 in April to 91.9 in May. Households were less concerned over the general economic situation, their financial situation and unemployment prospects in the year ahead. That said, despite the improvement, consumer confidence remained below its long-term average.